- Basel IV addresses, amongst other things, standardised approaches to credit risk.
- These changes to the standardised approach will affect regulatory credit risk regarding loans for secondary properties (i.e. non-primary residences) from 2022 when these new rules take effect.
- Many South African banks have large mortgage lending books and much of this lending (about 30% to 40%) is for non-primary residences.
- How the new rules will impact credit risk capital for this type of lending will be amongst the topics covered, including many Excel-based examples.
- Join us for the latest developments in Basel from one of Europe’s leading Consultants on the matter, having recently done extensive Stress Testing on Basel for the European Central Bank.
This practical course offers advanced-level insights into the Basel accords with emphasis on the Basel III and IV accords and also:
- Basel I – a brief overview of the what were the big ideas, why was it necessary in the first place and what risks did it cover?
- Basel II – why was it necessary, what improvements and additions were made to the Basel I accord?
- Basel III – a patchwork of corrective measures designed to repair flaws detected in Basel II, not replace Basel II. What are the timings involved in the implementation, why are these staggered, what are the big changes and how do they affect bank capital?
- Basel IV – which introduces sweeping changes to the trading book. What are these changes? How will they affect bank capital and what is the timing involved?
New changes (2014) to both the standardised approach to credit risk and to the simpler approaches to operational risk will be explored.
Extra Value Add! All aspects of the course will be reinforced using Microsoft Excel-based spreadsheets and models. Unique and exclusive pre-made spreadsheets will be provided to all delegates and explained to unlock their value.