Deadline for application

20 September 2024

Objective

Basel III is a comprehensive set of reform measures developed by the Basel Committee on Banking Supervision to improve the regulation and supervision of the banking sector. Finalised in December 2017, the full Basel III package addresses the lessons learnt from the financial crisis. In specific terms, the Basel III reform measures focus on strengthening the qualitative and quantitative standards within the regulatory capital framework, whereas Basel III from 2010 introduces a global liquidity framework, strengthens the definition of capital, provides a buffer concept and implements a leverage ratio. The current Basel framework also deals with the regulation of climate risk and crypto assets.

The course aims to provide an overview of the Basel framework and Basel III reforms. The Basel framework is likewise a major component of the regulatory harmonisation process within the European Union. This course will therefore also impart comprehensive expert knowledge on major issues relating to the implementation of the Basel III framework in the EU and Germany. In addition, it will introduce and illustrate the European supervisory review process (SREP and ICAAP).

The course will focus on both theoretical and practical components. 

Contents

• Brief introduction into supervision in Germany and Europe
• Brief overview and recap of the Basel framework, the motivation behind its revisions and the finalisation of Basel III 
• Definition of capital, leverage ratio and capital buffers 
• Liquidity risk – quantitative standards, monitoring tools, management principles (including a case study)
• Risk coverage – credit risk, operational risk, market risk (key elements of the FRTB, deep dive into new standardised approach, portfolio exercise)
• ICAAP (Pillar 2) – approaches and principles 
• German and European implementation of the supervisory review and evaluation process (SREP) for significant and less significant institutions
• Current regulatory developments

Target group

This course is aimed at experts from central banks and supervisory authorities involved in the implementation of the Basel framework. A good knowledge of the revised framework is essential for participation. Participants should also be familiar with the supervision policies and practices of their home countries’ financial systems and be prepared to actively contribute to discussions.