BASEL III and Credit Risk

06 December, 2021 Monday E-leaning

International Development Institute (lDl) is conducting a series of 10 virtual classes (Monday-Friday) on the BASEL III and Credit Risk from December 6- 17, 2021. 

Basel III is a requirement for many banks globally. This course provides a comprehensive study of the credit risk requirements and an overview of market and operational risk requirements. The course is interactive and is comprised of a lecture, case studies, and topical articles to supplement discussion of recent developments in Basel II/III implementation.

This course is designed for private sector practitioners and bank regulators.  This course provides a comprehensive study of Basel III’s credit risk requirements and an overview of market and operational risk requirements.  The instructor has been consulting and training on the Basel accords globally for decades and will share examples from the US, Europe, Asia, and emerging markets.  The course is interactive and is comprised of a lecture, case studies, and topical articles to supplement discussions of recent developments in Basel III implementation.

Registration and Nomination Form

CLICK HERE, to register and/or nominate in our upcoming training on “World Bank Procurement Methods”. You can also send nominations via email to training@idiworldwide.net or contact via WhatsApp messages at WhatsApp +1 571-348-118. 

Program Date: December 6-17, 2021.

The training is scheduled from 7:00 AM-9:30 AM EDT. Kindly download the brochure at the end of the page or time conversion tool to find training time in your country. Considering a very high number of applicants, IDI may decide to hold 2 different cohort's and participants have a choice to pick one of the dates. Please enroll before all seats are reserved.

Enrollment Deadline: November 25, 2021

All payments must be received by 30th November 2021 to confirm your enrollment.

Course Advisor

Mayra Rodríguez Valladares has over 25 years of consulting and training experience in financial regulations, structured finance products, capital and derivatives markets, risk management, risk based supervision and in various facets of the energy sector. Since 1998, she has been Managing Principal of MRV Associates, Inc. Her work has been with private sector banks and companies, US bank regulators, foreign central banks and capital markets regulators, NFA, CME Group, USAID, World Bank, FIRST

Initiative, GTZ, NGOs, and not-for-profit organizations. She has managed and trained successfully multinational teams through live and virtual platforms in Latin America, China, India, Central Asia, Southeast Asia, Bulgaria, Egypt, Hong Kong, Japan, Nigeria, Russia, Sudan, UK, and the US. Her key areas of expertise are finance (credit, market and operational risks, capital markets, derivatives, structured finance products, Basel III and risk based supervision). She has created and taught courses in finance, marketing, business planning, risk management and capital markets in Russian and Spanish, as well as in English. She is multilingual and has published extensively in the UK and the US; she has published over 400 articles on bank regulations and other finance topics in American Banker, Crain’s Business, Forbes, The Hill, and the New York Times.

Course Objectives

At the end of this course, participants should be able to:

  • Identify the core concepts involved in Basel III

    • for allocation of capital to credit risk using the standardized and advanced approaches

  • Compare and contrast advantages and shortcomings of Basel III

  • Work out a core theoretical quantitative/qualitative mix of statistical and business process management methods for the management of credit risk at a banking institution

  • Discuss challenges in Basel III implementation

  • Apply the concepts and skills attained during the course to work in groups and frame solutions for real-life case studies involving credit risk

  • Identify potential changes to Basel III 

Module I: Overview of Basel Accord

  • Evaluate key factors leading to The Basel Accord
  • Identify Herstatt risk
  • Identify key risks in financial institutions
  • Evaluate interconnectedness of risks

  • Evaluate why financial risks led to Basel Accord, Basel II and Basel II

  • Identify main components of Basel III

Module II: Overview of Basel III

  • Identify framework of Basel III and its objectives

    • Overview of the three pillars and their purpose

    • Application to credit, market and operations risk

  • Identify Basel II’s scope of application

  • Evaluate interconnectedness of Basel III’s three pillars

  • Explain what regulators hope the outcome of Basel III will be

    • Discuss regulators’ challenges in implementing Basel II

  • Identify positive results that banks expect from Basel III

    • Discuss challenges that they have encountered already

      • Challenge with models and data

      • Cost

      • Capacity gaps

        • Bank professionals, auditors, regulators

      • Uneven playing field between

        • Different sized banks

Module III: Overview of Pillar I

  • Identify key concepts in Pillar I

  • Define components of capital

    • Why did BIS choose this definition?

  • Identify application of Pillar I to credit risk

    • Compare briefly standardized approach with advanced approaches

    • Define probability of default, exposure at default

  • Describe challenges with models and data in adopting this pillar

    • What best practices are regulators looking for in the adoption of this pillar?

Module IV: Minimum Cpital Requirements for Credit Risk: The Standardized Approach

  • Identify three approaches to credit risk measurement

  • Evaluate inputs required for Pillar I approaches

  • Evaluate requirements for Standardized Approach 

Module V: Minimum Cpital Requirements for Credit Risk: Internal Rating Based Approaches

  • Identify key aspects and inputs of the Foundation and Advanced Internal Rating Based approaches

  • Define economic capital

    • Evaluate inputs banks use to determine probabilities of default, loss given default, and exposure at default

  • Evaluate securitization guidance under Basel III

  • Explore regulators’ concerns about advanced approaches

Module VI: Pillar II and Credit Risk

  • Define key concepts in Pillar II

  • Identify application of Pillar II to credit risk

Module VII: Pillar III and Credit Risk

  • Identify key concepts in Pillar III

  • Evaluate application of Pillar III to credit risk 

Module VIII: Implications of and Compliance with Basel III

  • Debate the impact of the global financial crisis as well as the pandemic crisis on Basel III

  • Evaluate readiness to comply with Basel III

  • Evaluate different views on the purpose of Basel III

  • Identify concerns from different countries about readiness to comply

  • Discuss recent proposed changes to Basel III