Objective

The Basel Framework is a comprehensive set of standards developed by the Basel Committee on Banking Supervision to improve the regulation and supervision of the banking sector. Finalised in December 2017, the full Basel III package addresses the lessons learnt from the financial crisis. The current Basel framework also deals with the regulation of climate risk and crypto assets as well as the Basel Core Principles.

The course aims to provide an overview of the Basel framework and especially the Basel III reforms; attention will also be paid to implementation at the EU and national levels. In addition, it will introduce and illustrate the European supervisory review process (SREP and ICAAP/ILAAP).

The course will focus on both theoretical and practical components. 

Contents

• Introduction to supervision in Germany and Europe
• Brief overview and recap of the Basel framework, the motivation behind its revisions and the finalisation of Basel III
• Definition of capital, leverage ratio and capital buffers
• Liquidity risk – quantitative standards, monitoring tools, management principles (including a case study)
• Risk coverage – credit risk, operational risk, market risk
• German and European implementation of the supervisory review and evaluation process (SREP – Pillar 2)
• ICAAP/ILAAP (Pillar 2) – approaches and principles
• Current regulatory developments

Target group

This course is aimed at supervisory experts from central banks and supervisory authorities involved in the implementation of the Basel framework. A sound knowledge of the revised framework is essential for participation. Participants should also be familiar with the supervision policies and practices of their home countries’ financial systems and be prepared to actively contribute to discussions, e. g. via short presentations on their national implementation.

Please note:

A nomination is required in order to participate in our in-person courses.