The Third Basel Accord was issued in December 2017. It applies a global framework for banking regulation and was developed in stages (Basel III (original) plus Basel IV) prior to and in response to the 2008 financial crisis
Although “soft law”, the Accord nevertheless constitutes the global, regulatory standard on bank , and . Specifically designed to enhance bank and banking sector stability, the Accord materially impacts banking business models. It is therefore a given that people working in banks and financial institutions have an awareness of the content of the Accord and its implications for the business of banking.
The Third Basel Accord is being introduced into EU law through the Capital Requirements Regulations (CRR I and II) and the Capital Requirements Directives (CRD IV and V).
Our course starts with a brief overview of the background to bank prudential regulation to refresh participants knowledge of the key drivers behind the introduction and development of the Basel Accords
This is followed by:
- a high level overview of the structure of prudential regulation;
- a detailed examination of each of the main topic areas, these being capital, risk weighted assets, leverage and the liquidity standard;
- an interbank comparison of latest Pillar 3 metrics.
The course then considers the extra regulations applicable to global systemically important banks (G-SIBs). This will involve a review ofthe Financial Stability Board’s TLAC standard for globally systemically important banks (G-SIBs)
The final part of the course examines the rules applied by the EU Bank Recovery and Resolution Directive.
Whilst this course will contain some numerical examples and illustrations it will avoid becoming bogged down in the detailed mathematics of financial risk management. Although a technical overview the main aim of the course is to provide a clear line of sight through to the business implications for banks implementing and working within the regulatory framework of the Third Basel Accord.