Bank Regulations

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Recommended that you register at least two weeks in advance.

Course Features

  • Course date:12/09/2019
  • Course Duration: 2 day
  • Level: Advanced
  • Prerequisites: Knowledge of BR
  • Method: Live & Virtual
  • Venue: MicroTek
  • Time: 9:00 am – 5:00 pm
  • Dress Code: Business Casual

BANK REGULATIONS

A significant number of Basel III and Dodd-Frank rules have changed the very nature of banking. In this course, we will discuss the major regulations that banks have to comply with and also how to benefit and profit from these rules. The course is interactive and participants are encouraged to ask questions and to participate fully in all discussions.

Learning Objectives

After this course, participants will be able to:

  • Discuss what is the new definition of capital
  • Identify new capital requirements under global and US Basel III rules
  • Discuss what types of banks are required to meet Basel III rules
  • Debate whether December 2017 final rules are Basel IV
  • Describe the components of the Dodd-Frank regulatory reforms
  • Evaluate what aspects of the US rules are coming from Basel and which are influenced by Dodd-Frank
  • Identify changes to Dodd-Frank with the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA)

Day I   

Basel III and December 2017 Final Rules

Module I             Capital

  • Discuss new components of capital in Basel III
    • Tier I, Tier II and relevant deductions
  • Identify changes in the treatment of minority interests
  • Describe AOCI filer and its new treatment
  • Discuss requirements for new buffers
    • Capital conservation
    • Leverage
      • Compare Basel requirements to U.S. Dodd-Frank’s Supplementary Leverage Ratio
    • Liquidity
    • G-SIB surcharge
  • Evaluate how prompt corrective thresholds will work

Module II            Standardized and Advanced Approaches to Measure Credit Risk

  • Enumerate new components of Standardized Approach
    • Comparison of risk-weighted assets with Basel I & III
    • Relationship to Pillar III disclosures
  • Describe changes to Advanced Approaches
    • CVA
    • Correlation factors
  • Discuss the capital treatment of OTC derivatives
  • Discuss the capital treatment of investments in financial and non-financial entities
    • Basel vs. US Volcker Rule
  • Compare and contrast the impact of changes in both approaches on capital required

Day II

Basel III (continued)

Module I             Updated Basel Committee Guidelines (Basel IV?)

  • Describe new Basel guidelines and consultative documents finalized in December 2017
  • Discuss Basel guidelines to reduce RWA variability
  • Identify changes to operational risk measurement
  • Evaluate the Fundamental Review of the Trading Book
  • Explain how those proposals will impact US banks
  • Discuss upcoming proposed stress testing guidelines

Module II            Managing Challenges from Basel III and Finding Its Rewards       

  • Evaluate the potential effect of Basel III on banks
  • Discuss the potential impact of ignoring economic capital
  • Identify RWA optimization strategies
  • Analyze IT challenges

Describe the components of the Dodd-Frank regulatory reforms

  • Focus on titles:
    • I (FSOC, prudential standards and living wills)
    • II (Orderly Liquidation Authority)
    • VI (Volcker Rule)
    • VII (Derivatives reform)
    • VIII (Central counterparties)
  • Identify the advantages and disadvantages to the regulations
  • Discuss banks’ reactions and preparation toward the regulations
  • Discuss new financial regulatory law S.2155 – Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA)

Instructor

  • Mayra Rodríguez Valladares is the Managing Principal of MRV Associates.  She specializes in training and consulting solutions for Basel III, Dodd-Frank, risk management, financial derivatives, capital markets, foreign exchange, and corporate finance.  She has worked with the private sector and foreign central banks in the US, UK, Latin America Eastern Europe, Central, and Southeast Asia, …
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