Category: Live Online | In-Person Courses

Bank Regulatory reporting and Basel/CRD

An introduction to Bank Capital and Liquidity Regulation

£474.00

✔️ If you’d like to be invoiced for this course and pay via bank transfer, please send your company details and the name of the course you’re interested in to info@lgca.uk, and an invoice will be issued.

Much time and effort goes into reporting various sets of numbers to the Bank of England’s Prudential Regulation Authority (PRA) – e.g. PRA101 upwards. But many people involved in this process may only have a limited understanding of the reasons for it. This reduces their engagement with it, their ability to spot mistakes and to suggest improvements to the way it is done. This course covers some fundamental questions: why are banks regulated? How – what are the main areas? It begins with the fundamentals of a bank’s business model and then focuses on the different types of risk this entails and how banks and their regulators try to mitigate them. Much jargon is busted. It is typically highly interactive, with delegates being asked and asking many questions. It can include excerpts from a recent Pillar 3 report. It can be delivered on-line or in-person, as a half-day or as two quarter-day single sessions.

More Information

Training Objectives

By the end of the programme, participants will:

• Know which areas of regulation are changing and in which way

• Understand the degree of impact each regulation has

• Understand the overall impact of the regulations on their business model

• Understand how some of the calculations are done

• Gain an idea of how much they will need to change their current processes to comply and the level of resources they need to commit

Who Should Attend

This course is ideal for:

• All financial firms and especially bank staff, in particular:

• Senior managers

• Compliance officers

• Finance/control staff

• Internal auditors

• Treasury staff

• Bank investors

• Central bank regulators

Training Outline

Introduction

Why is there regulation? Some past and recent banking disasters and their causes
Ideally: ‘goldilocks regulation’ – not too weak, not too harsh
Who regulates? Basel and Central Banks
Why are there so many Basels, CRDs and CRRs?
A bank’s business model
The different risks it gives rise to
How they can be mitigated
The two types of Capital/Own funds – Tiers 1 and 2
The two main sources of Capital
The Three Pillars
How bank runs can happen
Liquid assets and what they consist of
Asset-liability management – the need for and sources of stable funding

Pillar One

Capital

Consolidated/Group, solo
Provisions for expected loss – IFRS 9 – Capital for unexpected loss
Part 1: How much risk would the bank have in a stressed scenario? E.g. Credit risk and Risk Weights
The different Approach levels to estimating risk – e.g. Standardised, Internal
Part 2: How much Capital does the bank have and what deductions must be made? The various buffers
Part 3: What is the minimum ratio between the first two?
Other risks:
- Market Risk – e.g. interest rates
- Operational Risk – examples
- A more specific kind of risk only arising with certain types of transaction (e.g. swaps): Counterparty Credit Risk (CCR) and Credit Valuation Adjustment (CVA) – in brief
MREL and ‘bail-in’ debt
The Leverage Ratio – the unweighted Exposure Measure

Liquidity

The Liquidity Coverage Ratio (LCR) – outflow and inflow weights, liquid assets
The Net Stable Funding Ratio (NSFR) – Required v Available Stable funding, weights

Pillar Two

A bank’s Internal Capital Adequacy Assessment Process (ICAAP), ditto Liquidity
P2A: Interest Rate Risk in the Banking Book (IRRBB), gap analysis, the two methods, EVE and NII (in brief)
P2R: Internal Capital and Liquidity stress-testing (in brief)

Industry Expert | Michael Stafferton

Michael began his financial markets career in 1986 on the Financial Engineering desk at Yamaichi International, then one of the so-called ‘Big Four’ Japanese securities houses. The desk was mainly responsible for designing, structuring and swapping vanilla and structured bond issues for European clients. He then moved to a coverage role, predominantly in the UK and Eire, with responsibility for some of the more technically demanding clients, including the Bank of England and the European Investment Bank. He greatly expanded the volume of deals done, including a government, major banks, building societies and corporates. The role also involved working on UK privatisations and with the bank and fund management arm. In 1994 he moved to Kleinwort Benson with responsibility for debt, convertible and tax-structured origination with a number of top UK companies and helped launch an FRN. He has been training across a wide spectrum of cash instruments, derivatives, commodities and in risk management and regulation since 1999, at up to senior management level globally, his clients comprising mainly the top tier investment banks and fund managers, and is the author of a textbook on credit derivatives (Credit Derivatives Workbook, Euromoney, 2004). He is an Associate with Moody’s.

What People Say About LGCA

Charles Woodsmith | Assistant Compliance Officer

AGRC’s certificate in compliance helped me advance my career in the field of compliance by teaching me the ins and outs of the sector, the challenges I may face in the future, and the skills I need to overcome them and help my company remain compliant in a heavily regulated world.

Amanda Lee | Junior Compliance Officer

Compliance and its role in the financial world have never been easier to understand than with AGRC’s certificate programmes. The course was clear, comprehensive and practical, and provided me with the tools and skills I needed to further my career in compliance. I highly recommend these certifications and courses!

Cindy Marshall | Onboarding Officer

This certification is precisely what I was looking for. Since I work remotely, the best option for me was a self-paced, e-learning course that I could do and complete at my own convenience and at random hours of the day. AGRC’s training offered exactly that, plus a lot more. I delved deep into the world of compliance, gaining a thorough understanding of the industry and what it takes to succeed as a compliance officer. Thank you AGRC!

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AGRC makes compliance super interesting and simple to grasp. Their self-paced, online learning offerings are captivating and have prepared me to take the plunge and become a full-time compliance professional.