Basel III for Banks and Non-Banks

This course relates the Basel III concepts to trading and non-lending activities. Comparisons are provided to other capital measurement regimes to better understand relative capital costs under different measurement techniques. Both conceptual as well as practical applications are explored, and participants will develop an understanding of capital theory and history, as well as the relationships between risk measurement of asset and income activities in relation to funding.

Course objectives

By the end of this two-day course, participants should be able to:

• Recognize the development history and components of the Basel III capital standards for different risk types
• Explain the impacts of GAAP and IFRS netting rules for Basel III capital
• Apply Basel III to bank and non-bank entities
• Describe potential weaknesses of the Basel III approach and identify regulatory steps that have been taken to supplement Basel capital (e.g. stress tests)
• Analyze how Basel applies to activities in derivatives positions, especially credit default swaps and total return swaps.

Suggested Prerequisites: None

Program Level: Intermediate

Advance Preparation: None

Computers and Financial Calculators: N/A

Recommended CPE Credits: 14

Duration: 2 days