Regulatory Environment - Part 6

Regulatory Environment - Part 6

Overview

This tutorial describes the changes to the capital requirements under Basel III, including the tighter definition of qualifying capital and increased focus on CET1, the new capital buffers, and the revised minimum ratios. We explore the impact of these changes on banks’ capital structures. This tutorial describes how the Basel Committee on Banking Supervision (BCBS) responded to the issue of risk not being recognised or understated by updating and expanding risk coverage in some areas.

Objective

On completion of this tutorial, you will be able to:
- Describe the key elements of the amended capital adequacy regime under Basel III
- Define the concept of "qualifying capital" and understand the importance of common equity capital (CET1)
- Explain why additional capital buffers (capital conservation buffer and countercyclical capital buffer) were needed and what these buffers are
- Detail the timelines for full implementation of the Basel III capital requirements and summarise the key implementation issues
- Describe the expanded risk coverage of the Basel framework
- Detail why changes were needed and outline their impact

Content

Module 1: Basel III - Capital
Topic 1: Capital Adequacy under Basel III
Topic 2: Qualifying Capital
Topic 3: Capital Buffers & Revised Capital Ratios
Topic 4: Implementation of Capital Requirements

Module 2: Basel III - Risk Coverage
Topic 1: Securitisation
Topic 2: Trading Book
Topic 3: Counterparty Credit Risk (CCR)
Topic 4: Central Counterparties (CCPs)

Details

Code
TERCR17004701
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