Regulatory Environment - Part 7 (2019)

Regulatory Environment - Part 7 (2019)

Updated

Overview

This eCourse consists of three modules. Module 1 describes the liquidity and leverage framework introduced by the Basel Committee on Banking Supervision (BCBS) as part of Basel III. Building on the lessons learned from the financial crisis, the module details the components and methodology of the three ratios introduced by the BCBS – namely the LCR, the NSFR, and the Basel III leverage ratio.

Module 2 describes Pillar 2 regime in detail where Pillar 2 is the second element of the “three pillars” framework that was originally introduced by Basel II and subsequently retained and enhanced by Basel III. The focus of Pillar 2 is on ensuring that banks have adequate capital to cover the material risks to which they are exposed.

Module 3 describes Pillar 3 regime, which is the third element of the “three pillars” framework that was originally introduced by Basel II and subsequently retained and enhanced by Basel III. It deals with requirements related to market discipline, which it seeks to achieve by specifying minimum levels of public disclosure as well as standards applied to those disclosures.

Objective

On completion of this course, you will be able to:
- Recognize the need for the Basel III framework to include requirements related to liquidity and leverage
- Calculate a bank’s Liquidity Coverage Ratio (LCR), Net Stable Funding Ratio (NSFR), and leverage ratio
- Recognize the purpose of the Pillar 2 framework and the four key principles outlined by the Basel Committee on Banking Supervision (BCBS)
- Identify the steps involved in the ICAAP process
- Recognize the need for supervisors to undertake a SREP and the various elements in the assessment process
- Identify how the Pillar 3 disclosure regime has evolved through the years and the challenges that banks face in meeting these requirements
- Recognize the key Pillar 3 disclosure obligations and the templates/tables that banks must use when making such disclosures

Content

Module 1: Basel III - Liquidity & Leverage
Topic 1: Overview of Liquidity & Leverage
Topic 2: Liquidity Coverage Ratio (LCR)
Topic 3: Net Stable Funding Ratio (NSFR)
Topic 4: Leverage Ratio

Module 2: Basel III – Pillar II & ICAAP
Topic 1: Overview of Pillar 2
Topic 2: Internal Capital Adequacy Assessment Process (ICAAP)
Topic 3: Supervisory Review & Evaluation (SREP)

Module 3: Basel III – Pillar 3 & Risk Reporting
Topic 1: Overview of Pillar 3
Topic 2: Pillar 3 Reporting Requirements

Details

Code
TERCR19009301
Venue
ePlatform
Language
English
Level
Intermediate
Hours
SFC:3.00, PWMA:3.00
Fees
All Member: HK$870
Staff of Corporate Member: HK$870
Non-Member: HK$1230