Course Details

Capital Adequacy Ratio (CAR) and IFRS 9 Training Course

INTRODUCTION

The Capital Adequacy Ratio (CAR) and IFRS 9 Training Course is designed to provide professionals with a comprehensive understanding of regulatory capital requirements and the International Financial Reporting Standard 9 (IFRS 9). This course focuses on how CAR ensures financial institutions' stability and resilience, while IFRS 9 guides the classification, measurement, and impairment of financial instruments. Participants will gain insights into aligning regulatory and accounting frameworks, improving risk management, and enhancing compliance with global standards.

The Capital Adequacy Ratio and IFRS 9 Training Course equips professionals with the technical knowledge and practical skills to navigate the complex landscape of financial stability and reporting standards. Through interactive learning, case studies, and practical exercises, participants will be prepared to meet regulatory requirements, optimize risk management, and ensure compliance with global standards while enhancing the resilience and performance of financial institutions.

DURATION

5 days

TARGET AUDIENCE

This Capital Adequacy Ratio (CAR) and IFRS 9 Training Course is designed for:

• Finance Professionals: Accountants, auditors, and financial controllers in financial institutions.
• Risk Management Specialists: Professionals managing credit, operational, and market risks.
• Banking Professionals: Senior executives, compliance officers, and capital planning managers.
• Regulatory and Compliance Officers: Experts ensuring adherence to capital adequacy and financial reporting standards.
• Consultants and Advisors: Professionals assisting financial institutions in implementing CAR and IFRS 9 standards.

 COURSE OBJECTIVES

• Understand Capital Adequacy Requirements: Provide participants with an in-depth understanding of CAR, including Basel III regulations and their implications for financial institutions.
• Learn IFRS 9 Principles: Teach participants the key components of IFRS 9, including classification, measurement, and impairment of financial instruments.
• Link CAR with Risk Management: Equip participants with the skills to align CAR with credit, market, and operational risk management strategies.
• Implement Expected Credit Loss (ECL) Models: Guide participants on calculating ECL under IFRS 9 and integrating these into financial reporting.
• Ensure Compliance with Global Standards: Prepare participants to meet regulatory and financial reporting obligations effectively.
• Enhance Decision-Making: Foster better financial decision-making by understanding the impact of capital adequacy and impairment provisioning on balance sheets.

COURSE CONTENT

Module 1: Introduction to Capital Adequacy Ratio (CAR)

• Definition and importance of CAR in financial stability.
• Basel Accords (Basel I, II, III) and their evolution.
• Key components of CAR: Tier 1 and Tier 2 capital, risk-weighted assets (RWA).
• Regulatory requirements and thresholds for CAR.

Module 2: Key Concepts and Framework of IFRS 9

• Overview of IFRS 9 and its scope.
• Classification and measurement of financial instruments (amortized cost, FVOCI, FVTPL).
• Transition from IAS 39 to IFRS 9: Key changes and challenges.
• Case studies on IFRS 9 implementation in financial institutions.

Module 3: Risk-Weighted Assets and CAR Calculation

• Calculating RWA for credit, market, and operational risks.
• Role of risk weights in determining CAR.
• Stress testing and its relevance to CAR.
• Practical exercise: Calculating CAR for a sample bank.

Module 4: Expected Credit Loss (ECL) Models under IFRS 9

• Overview of the ECL approach: 12-month ECL vs. lifetime ECL.
• The three stages of credit impairment: Performing, underperforming, and non-performing.
• Forward-looking information and probability of default (PD).
• Practical exercise: Building an ECL model for a loan portfolio.

Module 5: Aligning CAR and IFRS 9 with Risk Management

• Interconnection between capital adequacy, risk management, and financial reporting.
• Balancing credit risk provisions under IFRS 9 with capital planning.
• Case studies on integrating CAR and IFRS 9 into enterprise risk management frameworks.

Module 6: Regulatory Reporting and Compliance

• Key regulatory reporting requirements for CAR and IFRS 9.
• Preparing reports for supervisory authorities and stakeholders.
• Common compliance challenges and strategies to address them.
• Workshop: Preparing a regulatory compliance checklist.

Module 7: Impacts on Financial Performance and Decision-Making

• How CAR and IFRS 9 affect a financial institution’s balance sheet and profitability.
• Strategic decisions related to capital buffers and provisioning.
• Practical examples of balancing growth, risk, and compliance.
• Case studies on the impact of CAR and IFRS 9 on strategic decision-making.

Module 8: Emerging Trends and Future Directions

• Updates to Basel III and forthcoming changes in CAR requirements.
• Enhancements in IFRS 9 due to market demands and technological advancements.
• The role of AI and data analytics in CAR and IFRS 9 implementation.
• Panel discussion: Preparing for the future of capital and financial reporting standards.

 CERTIFICATION

• Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate

TRAINING VENUE

• Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.

AIRPORT PICK UP AND ACCOMMODATION

• Airport pick up and accommodation is arranged upon request

TERMS OF PAYMENT

• Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com