Basel IIITraining, London ,28-30 November 2011

Level 33
BIII
TRAINING
BASEL III TRAINING
T: + 44 (0) 207 060 3396 F: + 44 (0) 207 681 3317 E: info@baseliiitraining.com
25 Canada Square
Canary Wharf
London E14 5LQ

Date: November 28 - 30, 2011 Duration: 3 Days (9am to 5pm)

Venue: Four Seasons Hotel Accreditation: Certified Basel III Professional (CBiiiPro)™
Canary Wharf, London Issued by the Basel III Association

Fee: £ 2,195.00 GBP + VAT per person CPD Hours: Total of 24 Hours
Group Discounts Available

OVERVIEW
The Basel Committee on Banking Supervision has issued a number of proposed amendments to the current Basel II
Accord, commonly referred to as “Basel III”.

Our training course has been designed to provide comprehensive knowledge and skills needed to understand the
new and extremely complex Basel III framework, and its impact in the UK & Europe.

During our three-day course, we provide unbiased, independent and strategic advice to enable
individuals/organisations to make sensible and informed decisions regarding Basel III implementation. This has
proved invaluable to many organisations internal decision making processes/strategies concerning Basel III,
resulting in substantial financial and operational benefits.

COURSE SYNOPSIS

What is Basel III?
 The Basel III papers
 Was Basel II responsible for the market crisis?
 Introduction to the Basel III Amendments
 The Financial Stability Board (FSB), the G20 and the Basel III framework

The New Basel III Principles for risk management and corporate governance
 The key areas where the Basel Committee believes the greatest focus is necessary
 1. Board practices
 2. Senior management
 3. Risk management and internal controls
 4. Compensation
 5. Complex or opaque corporate structures
 6. Disclosure and transparency

Sound Practices for the Management and Supervision of Operational Risk
 The 9 principles

The Quality of Capital
 The numerator: A strict definition of capital
 Limits and Minima
 Common Equity Tier 1
 Common shares issued by the bank
 Additional Tier 1 capital

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Registered in England No. 6734386. Business Unit of Solvency II Training Ltd, Level 33, 25 Canada Square, Canary Wharf, London, E14 5LQ, UK

Level 33
BIII
TRAINING
BASEL III TRAINING
25 Canada Square
Canary Wharf
London E14 5LQ

 Tier 2 capital
 Investments held by banks in capital instruments of other banks and financial and insurance entities
 The corresponding deduction approach and the changes in the business model
 Double Gearing and Basel III
 Securitisation and Resecuritisation

The Risk Weighted Assets
 The denominator: Enhanced risk coverage
 Understanding securitization

The Capital Ratio
 In addition to the quality of capital and risk coverage
 Calibration
 Transition period

Global Liquidity Standards
 Introduction of global minimum liquidity standards
 The Liquidity Coverage Ratio (LCR) that makes banks more resilient to potential short-term
disruptions in their access to funding
 Stock of high-quality liquid assets
 Total net cash outflows
 The Net Stable Funding Ratio (NSFR) that addresses longer-term structural liquidity mismatches in
banks’ balance sheets
 Available stable funding (ASF)
 Required stable funding (RSF)
 Contractual maturity mismatch
 Concentration of funding
 Available unencumbered assets
 LCR by significant currency
 Market-related monitoring tools
 Transitional arrangements

Capital Conservation
 Distribution policies that are inconsistent with sound capital conservation principles
 Supervisors enforce capital conservation discipline

Leverage Ratio
 Strong Tier 1 risk based ratios with high levels of on and off balance sheet leverage
 Simple, non-risk-based leverage ratio
 Introducing additional safeguards against model risk and measurement error
 Calculation of the leverage ratio

Countercyclical Capital Buffer
 Procyclical or Countercyclical?
 The new countercyclical capital buffer
 Home / Host Challenges
 Guidance for national authorities operating the countercyclical capital buffer

Page 2 of 5


Level 33
BIII
TRAINING
BASEL III TRAINING
25 Canada Square
Canary Wharf
London E14 5LQ

 Principles underpinning the role of judgement
 Principle 1: (Objectives)
 Principle 2: (Common reference guide)
 Principle 3: (Risk of misleading signals)
 Principle 4: (Prompt release)
 Principle 5: (Other macroprudential tools)
 Jurisdictional reciprocity
 Frequency of buffer decisions and communications
 Treatment of surplus when buffer returns to zero
 Interaction with Pillar 1 and 2

Systemically Important Financial Institutions (SIFIs)
 SIFIs and G-SIFIs
 Improvements to resolution regimes
 Additional loss absorption capacity
 More intensive supervisory oversight
 Stronger robustness standards
 Peer review
 Developments at the national and regional level
 The Financial Stability Oversight Council (FSOC)
 The European Systemic Risk Board (ESRB)
 Strengthening SIFI supervision

Systemically Important Markets and Infrastructures (SIMIs)
 The Basel Committee and Financial Stability Board endorse central clearing and trade reporting on
OTC derivatives
 Derivative counterparty credit exposures to central counterparty clearing houses (CCPs)

Risk Modelling, Stress Testing and Scenario Analysis
 Capture of systemic risk/tail events in stress testing and risk modelling
 VaR shortcomings: the normality assumption
 Need for a strong stress testing programme
 Systemic risk capture in banks’ risk models

Pillar 2 Amendments: Stress testing
 “Principles for sound stress testing practices and supervision”
 Use of stress testing and integration in risk governance
 Stress testing methodologies
 Scenario selection
 Principles for sound stress testing practices and supervision
 Firm-wide stress testing
 15 stress testing principles for banks
 6 stress testing principles for supervisors

Recognising the risk-mitigating impact of insurance in operational risk modelling
 Insurance industry supervision
 Banking supervisors’ assessment processes
 Approval of insurance contracts

Page 3 of 5


Level 33
BIII
TRAINING
BASEL III TRAINING
25 Canada Square
Canary Wharf
London E14 5LQ

 Revoking approval for recognising insurance mitigation in capital
 Maximum 20% operational risk capital charge reduction
 Modelling methodology
 Traditional and proposed insurance policies
 Criteria for recognising insurance mitigation
 Partial insurance modeling

Understanding Supervisory Colleges
 Good practice principles on supervisory colleges
 Principles for both home and host supervisors
 Principle 1: College objectives
 Principle 2: College structures
 Home supervisors, Host supervisors
 Principle 3: Information sharing
 Principle 4: Communication channels
 Principle 5: Collaborative work
 Principle 6: Interaction with the institution
 Principle 7: Crisis management
 Principle 8: Macroprudential work
 Case Study: Committee of European Banking Supervisors, Guidelines for the Operational Functioning
of Supervisory Colleges: Joint decision on model validation

Basel III for international financial organizations
 The Dodd-Frank Act in the USA and the Basel III framework
 The Capital Requirements Directives (II, III, IV) of the European Union and the Basel III framework

The Impact of Basel III
 Investment Banking, Corporate Banking, Retail Banking
 Investment banks are primarily affected, particularly in trading and securitization businesses
 The new capital rules have a substantial impact on profitability
 Banks with insurance subsidiaries
 Minority investments after Basel III
 Interaction between Solvency II and Basel III
 Regulatory Arbitrage after Basel III
 Examples and Case Studies
 Closing remarks

Page 4 of 5


Level 33
BIII
TRAINING
BASEL III TRAINING
25 Canada Square
Canary Wharf
London E14 5LQ

REGISTRATION FORM
Course Information
Course Title: Preparing for Basel III in Europe
th th th
Course Date: Monday 28 , Tuesday 29 , Wednesday 30 , November, 2011
Course Venue: Four Seasons Hotel, Canary Wharf, London, E14 8RS
Course Fee: £ 2,195.00 GBP + VAT per person (Group Discounts Available)
Includes: Comprehensive Basel III Training Manual, Study Material, Handouts, Basel III Information
on USB device, Certificate of Attendance, Breakfast, Lunch & Refreshments, 5 Star Facilities.

3 Ways to Register
Register Online: http://www.baseliiitraining.com/book_course.php?InstanceID=147
Email Scanned Copy to: register@baseliiitraining.com
Fax Completed Form to: + 44 207 681 3317

Delegate Information
□ Mr. □ Mrs. □ Ms. □ Dr. □ Prof.
First Name: ________________________________ Last Name: ____________________________

Company: ________________________________ Position: ____________________________

Email: ________________________________ Telephone: ____________________________

Address: ________________________________

________________________________ City: ____________________________

________________________________ Post Code: ____________________________

Payment Method
Direct Transfer: GBP, EUR accepted
Beneficiary: Solvency II Training Limited
Bank: HSBC Bank Plc
Sort: 40-18-51
A/C: 71363204
IBAN: GB38MIDL40185171363204
SWIFT: MIDLGB2110U

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Basel IIITraining, London ,28-30 November 2011

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Basel IIITraining, London ,28-30 November 2011