
Basel IV reforms address Basel III loopholes, restore credibility in risk-weighted asset calculations, and improve comparability of banks' capital ratios through standardized and internal model approaches.
Analyze Basel IV changes to exposures to sovereigns, PSEs, and MDBs, noting unchanged sovereign weights, 0% weights for ESM and EFSF, and new MDBs like CEDB, IFFIm, and AIIB.
Compare Basel IV risk-weighting approaches for bank exposures (ECRA and SCRA) and apply the standardised credit risk assessment grades (A, B, C) with due diligence for rated and unrated banks.
Analyze corporate exposures under Basel IV, distinguishing general corporate exposures from specialized lending and applying risk weights by external ratings. Note unrated exposures and investment-grade corporates, with 65% weight options.
Assess Basel IV standardized approach for credit risk by risk-weighting subordinated debt, equity, and other capital instruments, including 400% for speculative unlisted equity and 250% for most equity holdings.
Explore how retail exposures are risk-weighted under Basel IV, with regulatory retail at 75%, transactors at 45%, and other exposures at 100%, based on product, exposure value, and granularity.
Learn how Basel IV assigns risk weights to commercial real estate exposures based on loan-to-value and cash-flow dependence, with counterparty-specific weights for individuals, SMEs, and others.
Explore land acquisition, development, and construction exposures and Basel IV's 150% risk weight. Apply 100% risk weight to residential real estate when underwriting standards are met and pre-sale contracts exist.
Explore Basel IV changes to internal ratings-based approach for credit risk, including removal of advanced IRB for banks, corporates, and equity exposures, and the introduction of PD and LGD floors.
Explore how Basel IV sets PD floors at 0.05% and LGD floors from 0% to 50% under IRB, affecting wholesale and retail exposures.
Explore how Basel IV uses the SMA to calculate operational risk capital by pairing the business indicator with the internal loss multiplier, based on 10-year loss data.
Learn how Basel IV defines the operational risk capital requirement, calculated as ORC = BIC × ILM, with RWA equal to 12.5 × ORC.
Discover Basel IV leverage ratio revisions, including the 3% minimum and a 50% tier 1 buffer for G-SIBs, plus revised exposure measures, off-balance sheet treatment, and SA-CCR for derivatives.
Stay Ahead of the Curve with Basel IV Implementation
The banking landscape is constantly evolving, and Basel IV is the latest wave of regulatory changes designed to enhance the resilience of the global financial system. This comprehensive course is your essential guide to understanding and implementing the key updates introduced by Basel IV.
What You'll Learn:
Credit Risk: Delve into the revised Standardized Approach (SA) and Internal Ratings-Based (IRB) approaches, understanding the implications for risk weights, capital requirements, and portfolio management.
Operational Risk: Grasp the new Standardized Measurement Approach (SMA) for operational risk, explore its components, and learn how to calculate the operational risk capital charge.
Capital Floors: Understand the concept of capital floors and their impact on the overall capital adequacy of banks.
Leverage Ratio: Get up to speed with the stricter leverage ratio requirements and how they influence a bank's risk profile and capital planning.
Who Should Enroll:
This course is designed for:
Risk Professionals: Enhance your expertise in risk management and stay compliant with the latest regulatory framework.
Bankers: Equip yourself with the knowledge to navigate the changing regulatory landscape and make informed decisions.
Regulators: Gain a deeper understanding of Basel IV's requirements and implications for the banking sector.
Anyone interested in the future of banking regulation: Stay informed about the latest developments in the industry.
Prerequisites:
A basic understanding of banking regulations and risk management concepts is recommended but not required.
Enroll today to become a Basel IV expert and ensure your institution's compliance and resilience in the face of evolving regulatory standards.