Basel III/IV: Implications for Treasury and Investment Training Course

Introduction

This intensive 5-day training course provides a comprehensive and practical deep dive into the profound implications of the Basel III and Basel IV frameworks for treasury and investment functions within financial institutions. In the wake of global financial crises, these regulatory reforms have fundamentally reshaped how banks manage capital, liquidity, and risk, placing significant demands on treasury and investment desks. This program will equip participants with a thorough understanding of the intricate rules, their computational methodologies, and the strategic adjustments necessary to ensure compliance, optimize balance sheet efficiency, and maintain profitability in this new regulatory era.

The course goes beyond theoretical concepts, focusing on real-world applications, quantitative calculations, and the strategic impact of Basel III/IV on day-to-day treasury and investment operations. Through interactive case studies, hands-on exercises, and discussions of current industry challenges and best practices, attendees will learn to navigate the complexities of capital adequacy, liquidity ratios, large exposures, and the Fundamental Review of the Trading Book (FRTB). Whether you are a treasury manager, investment professional, risk analyst, or compliance officer, this program offers an unparalleled opportunity to master the critical aspects of Basel III/IV and position your institution for success in the evolving regulatory landscape.

Duration: 5 days

Target Audience:

  • Treasury Managers and Staff
  • Investment Portfolio Managers
  • Market Risk Analysts
  • Credit Risk Analysts
  • ALM Professionals
  • Financial Controllers
  • Regulatory Reporting Specialists
  • Compliance Officers

Objectives:

  • To provide a comprehensive understanding of the Basel III and Basel IV frameworks.
  • To equip participants with the knowledge to calculate and interpret key regulatory ratios (LCR, NSFR, CET1).
  • To understand the specific implications of Basel III/IV for treasury and investment activities.
  • To explore strategic responses and best practices for managing capital and liquidity under the new rules.
  • To enable participants to navigate the complexities of regulatory reporting and compliance.

Course Modules:

Introduction

  • Evolution of Basel Accords: from Basel I to Basel III/IV.
  • Objectives of Basel III/IV: strengthening resilience, addressing procyclicality, enhancing supervision.
  • Key pillars of Basel III: Minimum Capital Requirements, Supervisory Review, Market Discipline.
  • Overview of the major components and interconnectedness of the framework.
  • The critical role of treasury and investment functions in meeting Basel requirements.

Capital Adequacy under Basel III/IV

  • Common Equity Tier 1 (CET1), Additional Tier 1 (AT1), and Tier 2 capital components.
  • Risk-Weighted Assets (RWA) calculation: Credit Risk (SA, IRB), Market Risk (SA, IMA), Operational Risk.
  • Capital buffers: Capital Conservation Buffer, Countercyclical Capital Buffer, G-SIB buffer.
  • Leverage Ratio: calculation, implications, and interaction with RWA.
  • Impact on lending capacity and balance sheet optimization strategies.

Liquidity Risk Management: Liquidity Coverage Ratio (LCR)

  • Purpose and components of the Liquidity Coverage Ratio (LCR).
  • Definition of High-Quality Liquid Assets (HQLA) and their classification.
  • Calculation of net cash outflows under stressed scenarios.
  • Practical challenges in HQLA management for treasury.
  • Strategic implications of LCR on funding decisions and balance sheet structure.

Liquidity Risk Management: Net Stable Funding Ratio (NSFR)

  • Purpose and components of the Net Stable Funding Ratio (NSFR).
  • Definition of Available Stable Funding (ASF) and Required Stable Funding (RSF).
  • Calculation of NSFR for various asset and liability categories.
  • Impact of NSFR on business models, long-term funding, and investment decisions.
  • Challenges in optimizing balance sheet to meet NSFR requirements.

Counterparty Credit Risk (CCR) and CVA under Basel III/IV

  • Basel III revisions to counterparty credit risk capital.
  • Standardized Approach for Counterparty Credit Risk (SA-CCR) methodology.
  • Capital charge for Credit Valuation Adjustment (CVA) risk.
  • Impact on derivatives trading, collateral management, and central clearing.
  • Strategic implications for treasury hedging and derivatives portfolios.

Large Exposures Framework

  • Overview of the revised large exposures framework under Basel III.
  • Definition of an exposure and calculation methodologies.
  • Limits on exposures to individual counterparties and groups of connected clients.
  • Impact on interbank exposures, concentration risk, and syndication.
  • Practical implications for treasury funding and investment diversification.

Fundamental Review of the Trading Book (FRTB)

  • Overview of FRTB's objectives and scope for market risk.
  • Internal Model Approach (IMA) vs. Standardized Approach (SA) for market risk capital.
  • Non-modellable risk factors (NMRFs) and capital add-ons.
  • Impact on trading desk structures, capital attribution, and risk management systems.
  • Practical challenges and strategic responses for investment banks and trading desks.

Strategic Implications and Implementation Challenges

  • Impact of Basel III/IV on bank profitability and return on equity (ROE).
  • Balance sheet optimization strategies under the new regulatory regime.
  • Data infrastructure and IT systems requirements for compliance.
  • Interaction between different regulatory ratios and managing trade-offs.
  • Future outlook and ongoing developments in prudential regulation.

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

 

Basel Iii/iv: Implications For Treasury And Investment Training Course in Morocco
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