Learn about banking risks and how regulators aim to minimise them. We cover risk-weighted assets, capital, capital ratios and other regulatory measures. We look at the Basel Committee, Basel I, II and III as well as regional responses to the recent financial crisis. And we consider current trends, the implications for profitability and the challenges facing banks.
Out comes:
- Understand how banks are regulated
- Learn about Basel I, II and III
- Appreciate the key concerns for a bank’s management
- See how regulation affects banks’ decision-making and profitability
WHAT YOU WILL LEARN
Introduction and objectives
Banking risks
- Bank assets and liabilities
- What could go wrong?
- Minimising the risks
Introduction to capital ratios
- The Basel Committee
- “Capital” for banks
- Risk-weighted assets
- Capital ratios in principle
- Strengthening capital ratios
Capital ratios in practice
- Capital ratios and Basel III
- SIFIs and G-SIFIs
- Capital ratio examples
- Impact on banks
Current regulatory developments
- New Basel III measures
- Global implementation
- Recent developments
- Comments from example banks
Summary and conclusion
- Summary
- The future
- What next?