Basel IV / Basel 3.1 – Capital and Liquidity Requirements Demystified
Welcome to 2-Day in-person workshop on Basel IV! This workshop provides a comprehensive overview of the new regulatory framework for banks known as Basel IV (Also referred to as Basel 3.1). Specifically, we will focus on the capital and liquidity requirements under Basel IV and provide strategies for compliance. Basel IV (Basel 3.1) was originally expected to be implemented from 1 January 2022 (subsequently delayed to 1 January 2023 due to Covid-19) but is now set to be introduced from 1 January 2025 in the EU and UK.
In 2017, the Basel Committee on Banking Supervision introduced changes to the global capital requirements as part of the finalization of Basel IV, with a transition period leading up to 2029. These changes impact how banks calculate their capital requirements, particularly in relation to credit risk. For example, the use of internal risk models will be constrained via an output floor, and modifications will be made to the leverage ratio, credit valuation adjustment (CVA), and operational risk frameworks. It is worth noting that Basel IV aims to level the playing field and harmonize how banks calculate risks, not to increase the level of capital in banks globally. However, the reforms will likely have a disparate impact in different regions due to regional differences in banks’ use of internal models for calculating risk.
Our workshop covers the key components of Basel IV, including the standardized approach for credit risk, the internal ratings-based approach, the output floor, and the new market risk framework. We will also delve into the new liquidity requirements, such as the net stable funding ratio and the liquidity coverage ratio, and provide strategies for compliance.
Throughout the workshop, we use case studies, exercises, and real-world examples to help you understand the practical implications of Basel IV for your organization. For instance, we will look at specific case studies of banks that have successfully navigated the new regulations and identify key best practices. By the end of the workshop, you will have a clear understanding of the capital and liquidity requirements under Basel IV and be better equipped to manage risk in your organization.
Key Learning Features
This course is designed to provide you with the knowledge and skills needed to navigate the new regulatory framework for banks, known as Basel IV. You will gain the following:
- Learn about the changes made by the Basel Committee on Banking Supervision to the global capital requirements, and how they impact the way banks calculate their capital requirements, particularly in relation to credit risk.
- Understand the new liquidity requirements under Basel IV, such as the net stable funding ratio and the liquidity coverage ratio, and learn strategies for complying with these requirements.
- Understand and apply the new standardised approach to operational risk in accordance with Basel IV requirements.
- Learn how to manage market risk using the Fundamental Review of the Trading Book (FRTB) internal model, and understand the implications of the new market risk framework under Basel IV.
- Gain knowledge of how to make necessary transitional adjustments to capital output floors and ensure your organization is compliant with new capital requirements.
- Incorporate the counterparty credit risk standardised approach into your risk management framework and understand how it impacts your organization’s overall capital and liquidity requirements.
- Gain practical knowledge and tools for effectively managing your organization’s risks under the new regulatory framework.
- Use case studies, exercises, and real-world examples to understand the practical implications of Basel IV for your organization, and be better equipped to manage risk in an increasingly complex regulatory environment.
Overall, the course will provide you with the practical knowledge and tools necessary to effectively manage your organization’s risks under the new Basel IV regulatory framework. You will leave the course with a clear understanding of how to apply the new requirements to your business, and be better equipped to ensure compliance and manage risk in an increasingly complex regulatory environment.
Global Basel IV / Basel 3.1 Training Schedule
Explore our comprehensive training schedule for Basel IV/Basel 3.1 across key global cities. For detailed information on upcoming sessions in each location, please visit the respective links provided below:
Join us in a city near you to enhance your understanding of Basel IV/Basel 3.1 standards.
For More Information
We hope that the above course description has provided you with a clear understanding of the training program we offer. However, we understand that you may still have questions or need more information before making a decision. Our friendly and knowledgeable customer service team is here to help you with any queries you may have. If you would like to learn more about any of our training programs or would like to register for a course, please contact our customer service team. We will be happy to answer any questions you may have and guide you through the registration process.
If you are interested in running our training programs as an in-house program, we can provide you with a customized quotation based on your specific requirements. Our customer service team will be more than happy to assist you with this. We look forward to hearing from you and helping you with your training needs.
Our faculty members are highly qualified experts with a diverse range of specializations, including International Financial Reporting Standards (IFRS), International Public Sector Accounting Standards (IPSAS), Generally Accepted Accounting Principles (USGAAP), UK GAAP, risk management strategies, valuations, mergers & acquisitions, corporate governance, ESG reporting, supply chain management, prudential regulations, and compliance matters such as Basel regulations, Solvency II, Anti-Money Laundering regulations, and more. Additionally, they have expertise in a variety of professional development programs, such as negotiation skills, presentation skills, data management, Python, Block-Chain, Digital Assets, and Becker CPA. This depth and breadth of knowledge ensure an engaging and effective learning experience for professionals and senior executives, helping to enhance knowledge retention.
Our faculty members are seasoned professionals with a wealth of experience in their respective fields. They bring a unique combination of practical knowledge and theoretical understanding to the classroom, making them well-equipped to address the challenges faced by professionals in today’s rapidly changing business environment. Their expertise and hands-on experience ensure that participants receive the most up-to-date and relevant information, which they can immediately apply to their own work. The interactive and engaging learning environment fostered by our expert instructors also helps participants retain information and improves their overall understanding of the subject matter. Whether you’re seeking to expand your knowledge, enhance your skills, or explore new career opportunities, our faculty members are equipped to provide you with the guidance and support you need to achieve your goals.
Instructor for this course
The course instructor will be one of our highly experienced faculty members.
Our Partners in Learning
Session 1: Introduction to Basel IV
- Overview of the new regulatory framework for banks
- Key differences between Basel III and Basel IV
- Objectives of the Basel IV reforms
Session 2: Standardized approach for credit risk
- Principles and methodology of the standardized approach
- Credit risk mitigation techniques
- Calculation of risk-weighted assets
Session 3: Internal ratings-based approach for credit risk
- Principles and methodology of the internal ratings-based approach
- Use of internal models to assess credit risk
- Calculation of risk-weighted assets
Session 4: Operational risk
- Standardized approach to operational risk
- Basic indicator approach
- Standardized approach for banks using internal models
Session 5: Market risk and the FRTB
- Overview of the Fundamental Review of the Trading Book (FRTB)
- Standardized approach for market risk
- Internal models approach for market risk
Session 6: Capital requirements and output floors
- Overview of the output floor
- Calculation of the output floor
- Transitional arrangements for the output floor
Session 7: Liquidity requirements
- Overview of the net stable funding ratio
- Overview of the liquidity coverage ratio
- Strategies for complying with the liquidity requirements
Session 8: Counterparty credit risk
- Standardized approach for measuring counterparty credit risk
- Use of internal models to assess counterparty credit risk
- Incorporating the counterparty credit risk standardised approach into the risk management framework
Session 9: Conclusion and practical applications
- Review of key concepts and takeaways from the workshop
- Practical applications of Basel IV in risk management and compliance
- Discussion of industry-specific issues and case studies
Group Case Studies
Why you must attend?
In today’s fast-paced and ever-changing regulatory landscape, it is critical for banks and financial institutions to stay abreast of the latest developments in regulatory requirements. Basel IV – Capital and Liquidity Requirements Demystified is an essential training program for professionals in the banking and finance industry who want to gain a comprehensive understanding of the new regulatory framework for banks. This program will provide you with the knowledge and tools necessary to effectively navigate the latest regulations and mitigate risk in your organization.
The changes to the capital requirements as part of Basel IV are some of the most significant regulatory developments in recent years. These changes impact how banks calculate their capital requirements, particularly in relation to credit risk, and the use of internal risk models. Failure to comply with these new regulations can result in significant financial and reputational damage. Attending this training program will equip you with the practical knowledge and strategies needed to effectively manage risk in your organization, comply with the latest regulations, and stay ahead of the competition. Whether you are a risk manager, compliance officer, or senior executive, this training program will provide you with the skills and confidence necessary to navigate the complex world of banking regulation and achieve success in your career.
The Basel IV training program employs a comprehensive and interactive approach to learning, designed to deliver maximum impact and retention. Our methodology includes:
- A user-friendly slide deck that presents the concepts, methodologies, and principles of Basel IV in a clear and concise manner, making the material easily accessible to all attendees.
- Interactive sessions featuring real-life case studies to provide hands-on experience and bring the material to life, allowing attendees to see the practical application of Basel IV concepts and methodologies.
- Explanations of Basel IV concepts and methodologies through the use of examples and distinct scenarios, allowing attendees to understand the material in context and apply it to their own organizations.
- Group exercises designed to illustrate the implementation of Basel IV requirements, encouraging collaboration and fostering a deeper understanding of the material.
- Discussions on regional differences in implementation, industry issues, and best practices, providing attendees with a well-rounded understanding of the subject matter and allowing them to apply Basel IV requirements in their specific context.
- Access to additional course material and handouts, ensuring attendees have a comprehensive reference resource to support their learning and implementation of Basel IV requirements.
- An open and inclusive atmosphere that encourages attendees to ask questions and engage in discussion, ensuring a thorough understanding of the material and fostering a community of learning.
The combination of these elements creates a dynamic and engaging learning experience that will enable attendees to gain a comprehensive understanding of the Basel IV regulatory framework and equip them with the necessary knowledge and skills to comply with the new capital and liquidity requirements.
Who should attend?
This training course is specifically designed for professionals in the banking industry who are involved in regulatory compliance and risk management. It is an ideal program for regulatory experts, risk managers, internal and external auditors, financial controllers, and other professionals in the banking and financial services sectors who need to have a deep understanding of the new regulatory framework for banks, known as Basel IV.
This program is also suitable for professionals who are involved in providing advice and support to banks, such as consultants, legal professionals, and regulatory authorities. If you are seeking to enhance your knowledge of Basel IV and strengthen your skills in the areas of operational and market risk management, counterparty credit risk management, capital and liquidity requirements, and compliance, this course is tailored to meet your needs and support your professional development.
The course will cover a range of technical topics and is designed to be accessible to all regulatory experts, regardless of prior experience or background. Whether you are seeking to deepen your understanding of Basel IV or looking to expand your expertise in regulatory compliance and risk management, this course will provide you with valuable insights and practical tools that you can apply in your day-to-day work.
Upon completion of the course, all delegates will receive an evaluation questionnaire aimed at gathering valuable feedback. This feedback is crucial to Shasat’s ongoing commitment to improving the quality of its learning solutions. By analyzing the trends in the responses, we are able to continuously enhance and refine our offerings to meet the evolving needs of our clients.
Venue & other info
Our training programs take place at the most prestigious professional training facilities in the city. Our venues have been meticulously chosen and expertly crafted to deliver an unparalleled and sophisticated learning experience. To further elevate your training journey, we will offer an array of refreshments including gourmet tea/coffee, delectable snacks, and a sumptuous lunch to sustain you throughout the course. Your comfort and satisfaction are of the utmost importance to us. One week before the program begins, you will receive comprehensive joining instructions that include the exact venue details.
Please note that accommodation arrangements are the responsibility of the attendee.
Workshop Delivery (Online Programs)
The workshop will be delivered via the WebEx platform. Upon registration, all participants will receive comprehensive joining instructions for the live workshop. This fully virtual event will encompass a live-streamed presentation, personalized networking opportunities, interactive Q&A sessions, engaging polls, and post-event consultation to address specific concerns and support your continued growth.
Please be advised that for all in-person training programs, joining instructions will be sent via email to registered participants one week prior to the program’s commencement. These instructions will provide comprehensive information regarding the venue location, date, and time, as well as other important details such as parking arrangements, dress code, and any necessary equipment or materials. Kindly ensure that you carefully review the joining instructions and follow the guidelines provided to ensure a smooth and well-organized experience during the program.
Changes to the conference
Shasat reserves the right, at its sole discretion, to make modifications to the format, speakers, participants, content, venue location, program, or any other aspect of the conference, at any time and for any reason, without incurring any liability. This policy has been implemented due to recent events such as the Covid-19 pandemic and other jurisdictional restrictions. These modifications may include but are not limited to, changes necessitated by a Force Majeure Event
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We kindly request that you take into consideration any associated bank fees when making your course fee payment. To ensure your participation in the program, payment must be received before the course date. Once we have received both payment and a completed registration form, we will confirm your enrollment in the program. Thank you for your understanding and cooperation.
Our company is proud to offer a group discount of 15% for organizations or individuals who book a course for 5 or more participants. To take advantage of this offer and receive a personalized group discount code, please reach out to our customer service desk at [email protected]. Our team will be delighted to assist you with the booking process and answer any questions you may have. With this group discount, you can invest in the professional development of your team and drive success for your organization. Don’t hesitate to contact us today to learn more.
Upon successful completion of the training course, each participant will receive a certificate of completion that attests to the number of hours spent in training and serves as a valuable representation of their dedication to professional development. The certificate is not only a symbol of their achievement but also serves as proof of continuous professional development (CPD) and demonstrates their commitment to staying current in their field. We believe that CPD is a crucial aspect of career advancement and personal growth, and are proud to provide our participants with this important document.
For further assistance, we invite you to contact our dedicated customer service team. Our experienced and knowledgeable representatives are available to answer any questions you may have and provide the support you need to make informed decisions. We are committed to ensuring that you have a positive experience and are here to help in any way we can. Please don’t hesitate to reach out to us at your convenience.
Enhance your team’s skills and drive success for your business with our custom In-house training program. Our tailored approach aligns with your specific business needs, offering a cost and time-efficient solution for upskilling your employees. This not only improves their productivity but also positions your company as a competitive force in the market. Transform your investment in employee development into tangible results by choosing our In-house training option. To discuss and learn more about our services, please don’t hesitate to contact our training desk. We’re ready to help you create a bespoke program that’s just right for you.