The years since the Global Financial Crisis have been characterised by a period of unprecedented regulatory policymaking and economic change.
Basel has materially changed the required level and composition of capital. Of greater significance in South Africa is the impact on liquidity management. Banks must rise to the challenge of optimising their balance sheet and income statement subject to stringent and sometimes onerous regulatory requirements.
Aligning Three Lines of Defence, ERM and Board governance frameworks with new conduct and personal accountability are key requirements in this new regulatory paradigm.
- Basel has changed the existing capital, leverage and liquidity standards.
- The capital standards and new capital buffers will require banks to hold more capital and higher quality of capital than under current Basel rules
- A new leverage ratio is introduced to supplement the minimum capital requirements
- The Trading Book has greater focus. Counterparty credit risk is highlighted, and more robust methods for calculating capital for the trading book is being implemented.
This course will explain and illustrate the key insights into the practical aspects of:
- The regulatory requirements
- The new methodologies
- The key governance issues that banks must embrace
- The challenges banks will face in implementing the new requirements, and
- The benefits and problems arising from these changes
The course is designed for delegates who work in Finance, Risk and Sales, and some of the content is pitched at a highly advanced level. The course will be interactive with practical examples, case studies and debates.
A Basel game will be played on the last day where delegates will be provided with a simple balance sheet, income statement, and cut-down Basel 3 requirements. Delegates will have to maximise profits subject to the cut-down regulatory requirements using only a calculator and pen/ paper.
Who Should Attend?
- Risk Controllers
- Heads of Risk Management
- Financial Controllers
- Heads of Compliance
- Risk Managers