Regulatory Environment - Part 7

Regulatory Environment - Part 7

Overview

This tutorial describes the Basel III liquidity and leverage ratios, details the implementation issues, and outlines the potential impact on banks. The tutorial explains the requirements of Pillars 2 and 3, details the changes introduced by the BCBS, and explains their impact and implementation issues.

Objective

On completion of this tutorial, you will be able to:
- Describe the lessons learned from the financial crisis concerning liquidity and leverage
- Explain how the Liquidity Coverage Ratio (LCR) is determined, including the calculation of high-quality liquid assets (numerator) and net cash outflows (denominator)
- Explain how the Net Stable Funding Ratio (NSFR) is calculated and the difference between available stable funding (numerator) and required stable funding (denominator)
- Outline the need for a leverage ratio and the formula used to calculate it
- Detail the implementation issues and timeline associated with all of these ratios
- Explain the purpose of the three pillars approach adopted by the Basel Committee on Banking Supervision (BCBS)
- Describe the requirements for banks and regulators under Pillar 2 and the associated implementation issues
- Detail the disclosure requirements under Pillar 3 and the implementation challenges for banks

Content

Module 1: Basel III - Liquidity & Leverage
Topic 1: The Financial Crisis, Liquidity Risk & Leverage
Topic 2: Liquidity Coverage Ratio (LCR)
Topic 3: Net Stable Funding Ratio (NSFR)
Topic 4: Leverage Ratio

Module 2: Basel III - Pillar 2 & Pillar 3
Topic 1: The Three Pillars Approach
Topic 2: Pillar 2 Requirements & Implementation
Topic 3: Pillar 3 Requirements & Implementation

Details

Code
TERCR17004801
Venue
ePlatform
Language
English
Level
Intermediate
Hours
SFC:2.0, PWMA:2.0
Fees
All Member: HK$560
Non-Member: HK$780
Staff of Corporate Member: HK$560