Basel III and CRD IV/CRR

Basel III, the subject is all over the press but few banks and investment firms have so far tried to assess its impacts. The changes introduced by Basel III and CRD (Capital Requirement Directive) 4, its European Union implementation, will have fundamental implications for banks and investment firms. Strategic, structural and operational adjustments are likely to be required. Indeed, Basel III must not be considered as a new version of Basel II, as some of the changes are paramount, in particular with the introduction of strict liquidity requirements, tougher capital definitions and the introduction of a leverage ratio.

Regulatory change is a complex challenge that can only be addressed with a coherent and comprehensive approach. However, despite complexity and uncertainty, there are practical and concrete actions that can be taken now to prepare for a Basel III world.

This training course is designed as the first but essential step to grasping Basel III’s full implications. It will be based around some level of theory but also around case studies. The training will also integrate a significant amount of market feedback and insight.

19 May 2020 (ENG) - Webinar format - 2.30pm-4.30pm

9 June 2020 (ENG) - Webinar format - 9am-11am

Price:
Classroom based: 1050.00 €
Webinar: 300 €

Duration:
Classroom based: 7h
Webinar: 2h

Language: English, also available in French and German

Number of participants: 20

objectifs

Objectives

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

  • Describe the starting point and objectives of legislative package to strengthen the regulation of the banking sector;
  • Explain the most important provisions resulting from the Basel III regulation;
  • Identify the issues impacting their business and take appropriate actions.
Contenu

Content

1. From Basel II to Basel III

  • Basic principles
  • From Basel II to Basel III – Lessons learned from the recent financial crisis

2. Evolution of the minimum capital requirements and introduction of buffers

  • Modification of the Capital definition & associated potential fiscal impacts
  • Capital Conservation Buffer
  • Countercyclical Buffer
  • Risk Coverage (counterparty credit risk & reliance on external credit ratings)

3. Introduction of a Leverage Ratio

4. Basel III from a Liquidity Perspective

  • Liquidity Coverage Ratio (LCR): objectives and definitions
  • Net Stable Funding Ratio (NSFR): objectives, definitions and uncertainty
  • Monitoring tools: contractual maturity mismatch, concentration of funding, available unencumbered assets, LCR by 3 significant currencies, market-related monitoring tools
  • From Basel III to CRD4/CRR
  • Impact assessment

5. Expected strategic and operational impacts for the market, as well as an overview of the initial feedback received from Luxembourg institutions

6. A high-level look at the new reporting associated with the introduction of CRD 4

Target audience

  • Chief Financial Officers (CFOs);
  • Risk Managers;
  • Personnel and executives working for the internal audit or compliance department;
  • Personnel and executives working for the accounting & reporting department;
  • Financial analysts;
  • Credit analysts;
  • Liquidity specialists.
Our lead experts

Our lead experts

This training is coordinated by Jean-Philippe Maes, Partner at PwC Luxembourg who is involved in Basel II & III issues.

Jean-Philippe Maes has over 10 years’ experience in Basel II / III areas. He has helped many banks, investment firms and management companies implement Basel II and III. He created the review of prudential reporting and related processes for his clients. What is more, he supported PwC’s external audit teams, which allowed him to review the ratios and reportings of more than 50 banks.

He also contributed to the design and review of ICAAP reports (Pillar 2 of Basel III) for more than 40 financial institutions in Luxembourg.

As a trainer, Jean-Philippe has an extensive teaching experience having trained more than 500 employees in the financial sector on the Basel III topic in the last 5 years.

Contact us

Contact details

PwC's Academy, Crystal Park Building, PwC Luxembourg

Tel: +352 49 48 48 4040

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