Overview

This eCourse consists of two modules on Basel III. Module 1 looks in detail at the changes brought about by the Basel III framework in relation to capital adequacy. Module 2 covers capital adequacy, which measures a bank's ability to withstand losses under normal and stress conditions. It explains the regulatory approaches for measuring risk exposure, focusing on standardised and internal model approaches.

Objective

On completion of this course, you will be able to:
- Define capital adequacy and the minimum capital ratio
- Identify the components of regulatory capital and their qualifying criteria
- Recognize the concept of risk-weighted assets (RWAs)
- List the approaches that banks are permitted to use when calculating regulatory capital requirements
- Identify the minimum capital adequacy ratios that banks must meet, including capital buffers
- Recognize the additional requirements that globally systemically important banks (G-SIBs) must meet
- Recognize the components of the capital adequacy ratio (CAR) and how their values are determined
- Identify the permitted approaches for regulatory capital calculations for Pillar 1 risks
- Recognize the purpose of the input and output floor
- Recall the treatment of crypto asset exposures

Content

Module 1: Basel III – Pillar 1 & Capital Adequacy
Topic 1: Capital & Capital Adequacy
Topic 2: Capital Calculations
Topic 3: Minimum Capital Requirements

Module 2: Basel III – Measurement Approaches
Topic 1: Risk Measurement & Capital Calculations
Topic 2: Standardized Approach (SA)
Topic 3: Model-Based Approaches
Topic 4: Capital Calculations for Market Risk
Topic 5: Capital Calculations for Operational Risk
Topic 6: Output Floor
Topic 7: Crypto Asset Exposures