Basel Regulations and Capital Adequacy Requirements

Financial services professionals, consultants, and sales professionals interested in providing or selling products and services to banks and other financial institutions, and everyone interested in understanding credit and market risk exposure of banks and adequate capital requirements to cover those risks

Prerequisite
Please contact us for information about prerequisites.

Expected Duration
60 minutes

Description
Banks are required to maintain an adequate capital level at all times to protect depositors and creditors, including other banks, from exposure to risk. A set of international banking regulations, known as Basel I, was introduced in 1988. This accord recommended a minimum capital requirement of 8% of risk-weighted assets for banks operating internationally. The way in which the adequate capital requirement for banks is calculated has changed dramatically since then. Following a series of revisions and impact analyses, implementation of a new set of regulations, Basel II, began in 2007. Basel II aimed to strengthen the stability of the international banking system through capital requirements that were aligned closely to the underlying credit, market, and operational risks. Basel III began implementation in 2013 and lays down stricter capital standards, additional capital buffers, and higher risk-weighted assets and minimum capital ratio requirements.
This course provides an overview of the main features of the Basel regulations relating to capital adequacy requirements. It discusses various elements of Basel I, including the approach for determining capital adequacy and on-balance-sheet and off-balance-sheet items and associated risks. The course then identifies factors that led to the development of the Basel II and Basel III standards. Finally, the course examines the impact of the Basel regulations on capital requirement for banks.

Objective

Basel Capital Accord

  • select the financial risk and tier capital category
  • identify key characteristics of the Basel Capital Accord
  • recognize key elements of Basel I
  • recognize characteristics of Basel regulations
  • Basel Amendments and Capital Requirements

  • recognize strengths and weaknesses of Basel I
  • identify key elements of Basel II and Basel III that relate to capital requirements
  • recognize characteristics of capital adequacy requirements
  • MONTHLY SUBSCRIPTION

    $129/month
     

    ANNUAL SUBSCRIPTION

    $1295/year

    Multi-license discounts available for Annual and Monthly subscriptions.