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Japanese Equity Market
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Lending - An Introduction
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Commodities - An Introduction (Revised)
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Primer – MiFID II/MiFIR (New)
Understanding Private Wealth Management Business
Private Wealth Management Products & Services
Primer – Smart Beta (New)
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Basel III - Liquidity & Leverage
The financial crisis highlighted the weaknesses in the liquidity management practices of banks and the lack of adequate oversight by regulators. A key contributory factor was the aggressive growth in bank balance sheets that was largely financed by increased wholesale funding rather that longer-term retail deposits or increased capital.
In response to these issues, the Basel Committee on Banking Supervision (BCBS) introduced new measures as part of Basel III to address both liquidity risk and leverage. This course describes the Basel III liquidity and leverage ratios, details the implementation issues, and outlines the potential impact on banks.
On completion of this course, you will be able to:
• Describe the lessons learned from the financial crisis with respect to liquidity and leverage
• Explain how the Liquidity Coverage Ratio (LCR) is determined, including the calculation of high quality liquid assets (numerator) and net cash outflows (denominator)
• Explain how the Net Stable Funding Ratio (NSFR) is calculated and the difference between available stable funding (numerator) and required stable funding (denominator)
• Outline the need for a leverage ratio and the formula used to calculate it
• Detail the implementation issues and timeline associated with all of these ratios
Topic 1: The Financial Crisis, Liquidity Risk & Leverage
• Liquidity Risk & Liquidity Risk Management
• Developments that Affected Liquidity Risk
o Capital Market Funding
o Complex Financial Instruments
• Leverage & Liquidity Risk
• Lessons Learned
• Regulatory Response
Topic 2: Liquidity Coverage Ratio (LCR)
• Objective of the LCR
• How is the LCR calculated?
• High Quality Liquid Assets (HQLAs)
o Tiered Approach
• Cash Flow Measurement
Topic 3: Net Stable Funding Ratio (NSFR)
• Objective of the NSFR
• How is the NSFR Calculated?
• What is Stable Funding?
o Available Stable Funding (ASF)
o Required Stable Funding (RSF)
Topic 4: Leverage Ratio
• The Need for a Leverage Ratio
• How is the Leverage Ratio Calculated?
Basel III – An Introduction - View Now
ESTIMATED COMPLETED TIME
Basel III - Pillar 2 & Pillar 3
The course explains the requirements of Pillars 2 and 3, details the changes introduced by the BCBS, and explains their impact and implementation issues.
Other Courses In:
Banking Regulation - An Introduction
Basel II & Basel 2.5
Basel III - An Introduction
Basel III - Capital
Basel III - Risk Coverage
Basel III - Pillar 2 & Pillar 3
Financial Authorities (US)
Financial Authorities (UK) - PRA & FCA
Financial Authorities (UK) - Bank of England
Financial Authorities (Europe)
Financial Authorities (Asia)
Markets in Financial Instruments Directive (MiFID)
Primer – MiFID II/MiFIR
Dodd-Frank Act - An Overview
Foreign Account Tax Compliance Act (FATCA)
European Market Infrastructure Regulation (EMIR)
Undertakings for Collective Investment in Transferable Securities (UCITS)
Alternative Investment Fund Managers
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