Basel III – What's new vs. Basel II

Why Should You Attend:

Although US financial institutions have been managing risk exposures for years and are constantly striving for regulatory compliance, supervisory qualification remains difficult, and seems like a mirage in the distance. The introduction of new or revised regulations combined with a constant rising of the bar by regulators keeps banks’ risk and finance managers on their toes and mandates that they remain current with industry leading practices.

Banks have already spent a significant amount of capital on Basel II compliance and an additional amount will be spent to comply with Basel III. This cost increases if one were to include other regulations such as Dodd Frank (DFAST, CCAR) and Sarbanes-Oxley.

This session will provide an insight into what is needed from an end-to-end planning perspective while recognizing forthcoming challenges in the multi-year implementation program at your financial institution.

Areas Covered in the Webinar:

All updates to the Basel risk management framework have been made with the goal of promoting economic stability and reducing the impact of economic downturn conditions on the financial sector. This webinar will cover key aspects of Basel III that include:

• Higher capital ratios
• Focus on higher quality capital
• Additional risk coverage
• Introduction of leverage ratios
• Introduction of liquidity risk management, monitoring and pending liquidity ratios
• Revised standardized approach
• Stricter data requirements
• Reduction of procyclicality and promoting countercyclicality
• Collins amendment
• Implementation timelines for banks
• End to end implementation framework

This webinar will also cover challenges that banks are expected to face as they implement Basel III.

Who will Benefit:

• Risk Officers
• Compliance Officers
• Financial Officers
• Internal Auditors
• Line of Business Risk Managers
• Lines of Business Heads
• Regulatory Compliance Officer
• Staff with roles and responsibilities in systems and data management

Instructor Profile:

Varun Agarwal, is a Principal in the Risk and Compliance Practice within Capgemini’s Financial Services. Mr. Agarwal has over 19 years experience in areas that span from Regulatory Risk Management, Enterprise Risk Management, Risk Appetite, Credit, Market, and Country Risk Management. He has previously worked for JP Morgan Chase, HSBC and Deloitte & Touche in areas of Risk Strategy and Risk Consulting. His educational background includes a PhD in Economics, MS in Financial Economics and BS in Engineering. He is awaiting receipt of the CFA charter having passed all three levels of CFA exams. He is a published author on articles related to risk management; presented at numerous industry and trade conferences at both national and regional levels; featured in videos and blogs of third party information providers.

Topic Background:

The Basel Committee on Banking Supervision (BCBS), which is housed at the Bank for International Settlements (BIS), is a group tasked with providing thought-leadership to the global banking industry (http://www.bis.org/bcbs). Over the years, the BCBS has released volumes of risk-related guidance in an effort to promote stability within the global financial sector. By effectively communicating best-practices, the Basel Committee has influenced financial regulations worldwide. Basel regulations are intended to help banks:

• More easily absorb shocks due to various forms of economic and financial stress by holding adequate capital
• Improve risk management and its governance
• Enhance supervisory oversight, regulatory reporting, and transparency in the banking system

In June 2011, the BCBS released “Basel III: A global regulatory framework for more resilient banks and banking systems.” The new set of Basel regulations includes many enhancements to previous rules and will have both short and long term impacts on the banking industry. Each national banking jurisdiction has the liberty to modify this document; the US regulators issued their version of the Basel III document as the US Final Rule in July last year.

As such, the supervisory authorities continuously reevaluate the efficacy of their regulations and periodically introduce refined standards for risk management. The financial crisis of 2008-2009 had much to do with lack of liquidity in the banking industry, which was not addressed in Basel II. Basel III is an attempt to fill this gap, amongst other issues not addressed in the earlier regulations.

Follow us :