A key objective of the Finalizing Basel III (Basel IV) revisions is to reduce excessive variability of risk – weighted assets (RWAs). It addresses a number of shortcomings with the pre-crisis regulatory framework and provides a regulatory foundation for a resilient banking system that supports the real economy. A prudent and credible calculation of RWAs is an integral element of the risk-weighted capital framework.
Banks’ reported risk-weighted capital ratios should be sufficiently transparent and comparable to permit stakeholders to assess their risk profile.
This workshop provides participants with a detailed tour of the Basel accords issued by the Bank for International Settlements (BIS) through a mix of lectures, numerical exercises and case studies.
On completion of this workshop, participants will be able to:
• Identify the features and requirements of the new revisions of the calculation of Risk Weighted
• Describe possible future developments in the computation of Credit risk and Operational risk.
• Outline the new enhancements to the Standardised Approach for measuring Credit risk.