loader image
Training Courses

Bank Capital Adequacy Under Basel III

Course Code
FA74
Category
Finance And Accounting
Course ID
2576
Course Outline

Course Overview

This DIXONTECH course provides a deep and practical understanding of Basel III standards and their implications for bank capital adequacy, risk management, and financial stability. Participants will gain insights into the regulatory requirements for Tier 1 and Tier 2 capital, liquidity ratios, leverage ratios, and stress testing frameworks. The course equips professionals to assess capital resilience and ensure compliance with Basel Committee on Banking Supervision (BCBS) standards in a rapidly evolving financial landscape.

TRAINING TOPICS

  • Overview of Basel Accords: Basel I, II, and III
  • Core Principles of Bank Capital Adequacy
  • Capital Structure: Tier 1 and Tier 2 Components
  • Risk-Weighted Assets (RWA) and Credit Risk
  • Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR)
  • Leverage Ratio and Capital Buffers
  • Stress Testing and Scenario Analysis
  • Supervisory Review Process (Pillar 2)
  • Market Discipline and Disclosure (Pillar 3)
  • Future Developments: Basel IV and Beyond

BY THE END OF THIS TRAINING COURSE, DELEGATES WILL BE ABLE TO:

Master the calculation, monitoring, and strategic management of bank capital adequacy in compliance with Basel III standards.

  • Assess capital adequacy under Basel III
  • Differentiate between capital tiers and components
  • Calculate risk-weighted assets effectively
  • Apply liquidity and leverage requirements
  • Conduct stress tests and scenario analyses
  • Strengthen capital planning and resilience
  • Align governance with Basel compliance frameworks

TRAINING IS TAILORED TO

Finance and risk professionals responsible for regulatory compliance, capital planning, and banking supervision.

  • Bankers and Financial Analysts
  • Risk and Compliance Officers
  • Treasury and Finance Managers
  • Regulators and Supervisors
  • Chief Financial Officers (CFOs)
  • Internal and External Auditors
  • Credit and Market Risk Specialists

TRAINING METHODOLOGY

DIXONTECH applies a practical, case-based approach combining lectures, financial modeling, regulatory exercises, and interactive discussions. Participants will work on simulated Basel III capital calculations, liquidity assessments, and stress testing models reflecting global best practices and supervisory expectations.

DAY 1

INTRODUCTION TO BASEL FRAMEWORKS AND CAPITAL ADEQUACY

  • Evolution of Basel I, II, and III accords
  • Objectives and structure of Basel regulations
  • The three pillars of Basel III overview
  • Key lessons from the 2008 global financial crisis
  • Role of capital adequacy in financial stability
  • Overview of minimum capital requirements
  • Key reforms introduced by Basel III
  • Comparison with previous Basel frameworks

DAY 2

CAPITAL STRUCTURE AND RISK-WEIGHTED ASSETS

  • Definition and classification of regulatory capital
  • Common Equity Tier 1 (CET1) and Additional Tier 1 (AT1)
  • Tier 2 capital and capital instruments
  • Understanding deductions and adjustments
  • Calculating risk-weighted assets (RWA)
  • Credit, market, and operational risk components
  • Internal ratings-based (IRB) approach fundamentals
  • Capital ratio computation and thresholds

DAY 3

LIQUIDITY AND LEVERAGE REQUIREMENTS

  • Liquidity Coverage Ratio (LCR) explained
  • Net Stable Funding Ratio (NSFR) mechanics
  • Leverage ratio and balance sheet discipline
  • Interaction between liquidity and capital measures
  • Monitoring tools for liquidity risk management
  • High-quality liquid assets (HQLA) categorization
  • Case study: managing liquidity stress events
  • Supervisory expectations and regulatory compliance

DAY 4

SUPERVISORY REVIEW AND STRESS TESTING FRAMEWORKS

  • Understanding Pillar 2 requirements and objectives
  • Internal Capital Adequacy Assessment Process (ICAAP)
  • Stress testing methodologies and best practices
  • Scenario design and sensitivity testing
  • Capital planning under adverse conditions
  • Governance of risk and capital management
  • Regulator communication and review cycles
  • Basel stress test case analysis

DAY 5

DISCLOSURE, MARKET DISCIPLINE AND FUTURE TRENDS

  • Pillar 3 disclosure requirements and transparency
  • Public reporting and stakeholder accountability
  • Market discipline and reputational risk impacts
  • Integrating ESG risk into Basel frameworks
  • Basel IV updates and implementation challenges
  • Digital banking and regulatory technology (RegTech)
  • Strengthening board oversight and governance
  • Building sustainable capital adequacy frameworks

 

Course Schedule

Discounts and Registration

Group & Corporate Discounts:
Available for companies enrolling multiple participants to help maximize ROI.
Individual Discounts:
Offered to self-sponsored participants who pay in full and upfront.
Registration Process:
Corporate nominations must go through the client’s HR or Training department.
Self-nominations must be prepaid via the “payment by self” option.
Confirmation:
All registrations are subject to DIXONTECH’s approval and seat availability.
Refunds:
Provided in case of course cancellation or no seat availability.
Tax Responsibility:
Clients are responsible for any local taxes in their country.