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Regulatory Capital and Supervision under Basel Committee Standards
Regulatory Capital and Supervision under Basel Committee Standards
Training Activity Rate
محمد غنيم
Training activity Hours
Training activity Date
Training Activity Days
Start and End Time
16:30 - 20:15
Training Activity Classification
Course Language
In class
Type of Training
short courses
Deadline for registration
Price For Jordanian
120 JOD
Price For Non Jordanian
300 US$

By the end of this training course, trainees will be able to :

-       Understand the role and importance of capital in a bank’s balance sheet.

-       Explain the purpose, principles, evolution and application of the basel capital adequacy regulations.

-       Identify the composition and relative importance of the different capital types, including Common equity tier 1 (CET1), additional tier 1 (AT1), and tier 2, as well as basel III’s regulatory buffers.

-       Describe the component of basel III accord related to liquidity, leverage ratio and G-SIB/D-SIBs regulations.

-       Differentiate the alternative methodologies for assessing risk weighted assets for credit, market and operational risks.

-       Apply the basel capital adequacy rules to a bank.

-       Explain the significance and purpose of the ICAAP and its key components including stress testing.

-       Describe the purpose of the ILAAP and its key components.

-       Differentiate between regulatory capital and economic capital.

-       Understand RAROC and how it is used to price products and evaluate performance.

Target Group

-  Professionals working in:

-    Treasury .

-    Risk .

-    Finance .

-    Capital management.

-    Regulatory compliance.

-    Audit.

General Goal

This module will provide a solid theoretical and practical understanding of the current regulatory and supervisory guidelines and Basel III. The broad knowledge points covered in this module include the following:

-    Basel Committee Accords

-    Regulatory Capital and Capital Adequacy Ratio

-    Risk weighted assets (RWA) for Credit Risk, Market Risk and Operational Risk.

-    ICAAP, Stress Testing and ILAAP

-    Economic capital and RAROC


-       Bank regulatory capital :

-       The evolution of basel regulations:

-       Basel I .

-       Basel II: the three pillars:

-       Minimum capital.

-       Supervisory review.

-       Market discipline.

-       Basel III :

-       Capital adequacy ratio minimum requirement.

-       Liquidity framework (LCR, NSFR, monitoring tools).

-       Leverage ratio.

-       G-SIBs and D-SIBs requirements.

-       Definition of regulatory capital under basel III :

-       Basel common equity tier 1 capital (CET1), additional tier 1 capital (AT1) and tier 2 capital.

-       Capita buffers capital conservation, countercyclical and G-SIB/D-SIBs buffers.

-       Pillar 2 add-on.

-       Case study .

-       Basel III minimum capital requirements :

-       The credit risk capital charge :

-       Expected credit losses: IFRS 9: three credit impairment stages.

-       The standardized approach (SA).

-       The foundation internal ratings-based approach (F-IRB).

-       The advanced internal ratings-based approach (A-IRB).

-       The market risk capital charge:

-       The standardized approach.

-       Internal models approach (IMA):

-          Value at risk (VAR) and stressed VAR.

-          Expected shortfall.

-       The operational risk capital charge :

-       Standardized measurement approach.

-       Practical exercises .

-       Pillar 2 –supervisory review :

-       Four key principles of supervisory review .

-       ICAAP :

-       Pillar II risks: credit concentration risk, interest rate risk in the banking book, Liquidity risk, strategic and reputational risks and other risks.

-       Stress testing.

-       ILAAP.

-       Case study.

-       Beyond regulatory capital :

-       Economic capital .

-       Risk Adjusted Performance measures (RAROC).