Banking & Regulation

The modern banking industry is governed by an extraordinarily complex system of local, industry, federal, and international regulations that are constantly being changed and updated in response to market conditions, innovations and of course, the global financial crisis. Financial services firms must continuously update their internal compliance systems in response ongoing changes in regulatory requirements including liquidity, capital, anti-money laundering, anti-fraud, supervision and recordkeeping.

New regulatory frameworks including MiFID, Basel III and the Dodd-Frank Act have not only created more extensive compliance requirements but also added significant costs to the financial services industry. Finance IQ offers an extensive list of courses that provide participants with detailed reviews of these financial regulations and their impacts on financial firms and the industry.

Securities Fraud and Compliance Primer
History of US Financial Regulation
Risk, Capital and Regulations
Basel III: Impact on US Banks and Financial Institutions
Basel III: Impact on Central Banks, Regulators & Auditors
Basel III: Credit Risk Management
Basel III: Measuring & Managing Operational Risk
Essentials of Corporate Banking
Advanced Corporate Banking: Managing the Relationship

Securities Fraud & Compliance Primer

This half-day seminar gives participants an overview of key developments in the history US financial regulation.  Starting with formation of New York Stock Exchange and moving through key events like the creation of the Securities Exchange Commission and the implementation of Dodd-Frank, participants should gain appreciation for key elements in the regulatory landscape in the United States.  Additional emphasis during the course will be placed on understanding how investment managers and investment advisers are regulation in the United States.

Learning Objectives

Outline/Topics:

  • Define fraud
  • Identify common types of fraud
  • Identify the significant securities law and regulations related to adviser registration
  • Describe how major provisions of securities regulation impact registrants

Duration: ½ day

Program Level: Basic

Prerequisites: There are no prerequisites

1 Day Program
  • What is Fraud
    • Securities Act of 1933
    • Exchange Act of 1934
    • Rule 10b, Rule 10b-5 and Section 17(a)
  • Common Types of Fraud
    • Affinity Schemes
    • Internet and Social Media Fraud
    • Microcap Fraud
    • Ponzi Scheme
    • Pre-IPO Investment Scams
    • Others
  • Anti-fraud provisions of the Investment Advisers Act of 1940
    • Fiduciary Duty
    • Advertising
    • Custody
    • Compliance
    • Record Keeping

For a detailed outline and additional information on this course or to find out about our other courses, contact us at +1-646-244-5190 or [email protected]

History of US Financial Regulation

This half-day seminar gives participants an overview of key developments in the history US financial regulation.  Starting with formation of New York Stock Exchange and moving through key events like the creation of the Securities Exchange Commission and the implementation of Dodd-Frank, participants should gain appreciation for key elements in the regulatory landscape in the United States.  Additional emphasis during the course will be placed on understanding how investment managers and investment advisers are regulation in the United States.

Learning Objectives

Outline/Topics:

  • Identify key milestones in the formation of US capital markets
  • Describe the purpose behind and various elements within major securities-related Statutes
  • Explain the Rule making process for the SEC
  • Identify relevant requirements within the regulatory environment for investment managers and investment advisors

Duration: ½ day

Program Level: Basic

Prerequisites: There are no prerequisites

1 Day Program
  • Hierarchy of Securities Laws
    • Statutes
    • Rules
    • No action letters
    • Interpretive releases
  • Key Events
    • Milestones in capital markets
    • Major securities-related Statutes
  • Investment Advisers & Managers
    • Investment Advisers Act 1940
    • Investment Company Act 1940
    • Rule making process
    • No action letters

For a detailed outline and additional information on this course or to find out about our other courses, contact us at +1-646-244-5190 or [email protected]

Risk, Capital and Regulations

This two-day workshop provides a detailed review of the critical elements of capital regulations.  Topics to be covered include: the definition of capital and Basel ratios, counterparty credit risk capital requirements, leverage ratios, bank exposure to CCPs, margin on non-centrally cleared trades and a discussion on implementation issues and the future of capital regulations.  The course is uniquely delivered from the perspective of the financial institution and affords participants many opportunities to explore and discuss the challenges associated with the emerging regulatory environment.

Learning Objectives

Outline/Topics:

  • Explain the key components of capital regulation
  • Compare Basel III to the previous Basel Accords
  • Compare and contrast Basel III to Dodd Frank and other global financial legislation
  • Calculate and interpret technical elements (i.e., analysis of exposures, methods for calculation credit risk) to regulatory exam and compliance activities
  • Describe implementation issues, the future of capital regulations and the impact of regulation on banks and markets

Duration: Two days

Program Level: Basic

Prerequisites: There are no prerequisites

CPE: 14.0 CPE Credits

Day 1
  • Overview of Basel 2.5 and Basel III
    • Key differences
    • Relationship with country regulators
  • Capital Regulation
    • What is capital?
    • Why the increase in capital requirements?
  • Objectives of Basel III
    • Capital requirements
    • Liquidity requirements
    • Liquidity Coverage Ratio (LCR)
    • Net Stable Funding Ratio (NSFR)
    • Asset/Liability implications
    • Measurement of RWA (Risk Weighted Assets)
    • Leverage and leverage ratios
    • Var and stressed Var
    • Expected Shortfall
    • Incremental Charge
    • Counter cycle buffer
    • CET1
    • SIFIs
Day 2
  • Counterparty Credit Risk
    • Credit Risk
    • Derivatives vs physical
    • Settlement expose
    • Pre settlement exposure (PSE)
    • Pre settlement likely exposure (PSLE)
    • Calculations
    • Exercise: Determine PSE and PSLE
    • Mitigating counterparty credit risk
    • ISDAs
    • CSAs
    • Credit Derivatives
    • CVA and XVA
  • Central Clearinghouses
    • Dodd-Frank Title VII
    • OTC Derivatives
    • Role of a CCP
  • Bilateral and multilateral netting
  • Concentration of risk
  • Future Challenges
    • Regulatory Change and the impact on banks
  • Margin requirements
    • Volker Rule
    • Compliance
    • Internal and external audit
    • Systems
    • Policies and procedures

For a detailed outline and additional information on this course or to find out about our other courses, contact us at +1-646-244-5190 or [email protected]!

For a detailed outline and additional information on this course or to find out about our other courses, contact us at +1-646-244-5190 or [email protected]

Basel III: Impact on US Banks and Financial Institutions

The last seven years have seen a flurry of guidelines from the Basel Committee to update the international 2010 Basel III framework.  At the same time, the US has finalized rules based on the 2010 Basel III framework.  US banks have not only been busy trying to understand how domestic rules will impact them, but also trying to discern how those rules may change in light of recent Basel Committee recommendations on risk weighted asset modeling. This two-day interactive course is for any type of market participant who needs to understand how US Basel III rules will impact US banks and the domestic financial system.

Learning Objectives

Outline/Topics:

  • Discuss the new definition of capital
  • Identify capital requirements under new US Basel III rules
  • Identify the types of banks required to meet new US rules
  • Identify key new guidelines proposed in Basel during 2013 that may impact US banks
  • Evaluate what aspects of the US rules come from Basel and which are influenced by Dodd-Frank

Duration: Two days

Program Level: Basic

Prerequisites: There are no prerequisites

CPE: 14.0 CPE Credits

Day 1
  • Overview of Basel II
    • Capital under Basel II
    • Three pillars of Basel II
    • Three methodologies to measure credit risk in Pillar I
    • Shortcomings of Basel II
  • What is Capital under Basel III
    • Components of capital in Basel III
    • Treatment of minority interests
    • AOCI filer
    • Requirements for buffers
      • Capital conservation
      • Leverage
      • Liquidity
      • G-SIB surcharge
    • Corrective thresholds
  • Changes in Standardized and Advanced Approaches
    • Components of Standardized Approach
      • Risk-weighted assets under Basel II & III
      • Relationship to Pillar III disclosures
    • Advanced Approaches
      • CVA
      • Correlation factors
    • Capital treatment of OTC derivatives
    • Capital treatment of investments in financial and non-financial entities
      • Basel vs. US Volcker Rule
    • Impact of recent changes in both approaches on capital required
Day 2
  • Application and Timeline
    • US banks impacted by US Basel III rules
    • Timeline to comply with US rules
  • BCSB 239
    • Principles of risk data aggregation
    • BCBS 239 as a critical element of Basel III
  • Effects of Basel III
    • Potential effects of Basel III on US banks
    • Impact of ignoring economic capital
    • RWA optimization strategies
    • IT challenges
  • Basel Committee Guidelines
    • Basel guidelines and consultative documents
    • Basel guidelines to reduce RWA variability
    • Potential changes to operational risk measurement
    • Impacts on US banks

For a detailed outline and additional information on this course or to find out about our other courses, contact us at +1-646-244-5190 or [email protected]

Basel III: Impact on Central Banks, Regulators & Auditors

Recently, there has been substantial media coverage on how Basel III will impact banks globally.  Yet, an equal amount of attention should be given to how Basel III impacts the role of central bankers, bank regulators, financial regulators, and internal and external auditors. All of these professionals have to be up-to-date on the changing nature of Basel III in order to be able to effectively supervise, examine, and audit banks that are required to implement Basel III. This course is designed for professionals seeking to increase their understanding of Basel III and its influence on their professional responsibilities.

The two-day program is interactive and comprised of a lecture, case studies, and relevant articles to supplement discussions of recent developments in the implementation of Basel III.

Learning Objectives

Outline/Topics:

  • Review key elements in Basel II which remain in Basel III
  • Define capital and new buffers in Basel III
  • Discuss best practices for internal and external auditors and examiners who audit or supervise banks
  • Evaluate typical internal models used by banks in measuring credit and market risks
  • Identify key challenges in monitoring banks’ liquidity

Duration: Two days

Program Level: Basic

Prerequisites: There are no prerequisites

CPE: 14.0 CPE Credits

Day 1
  • Overview of Basel II
    • Capital under Basel II
    • Three pillars of Basel II
    • Three methodologies to measure credit risk in Pillar I
    • Shortcomings of Basel II
  • What is Capital under Basel III
    • Components of capital in Basel III
    • Treatment of minority interests
    • AOCI filer
    • Requirements for buffers
      • Capital conservation
      • Leverage
      • Liquidity
      • G-SIB surcharge
    • Corrective thresholds
  • Auditing and Examining Internal Credit and Market Risk Models
    • Best practices to audit and examine banks’ internal models
      • Credit risk models- Black-Scholes Merton, Risk migration frameworks, CVaR
      • Market risk models – VaR and Expected Shortfall frameworks
    • Relationship between models and Basel III formulae
    • Bank inputs, model creation and validation, and use of models
    • Audit and internal control issues
Day 2
  • Monitoring Liquidity Standards
    • High quality liquid assets
    • Best practices for monitoring bank liquidity stress scenarios
    • Evaluating metrics to monitor banks’ liquidity
      • Contractual maturity mismatch
      • Concentration of funding
      • Available unencumbered assets
      • By significant currency
      • Market-related monitoring tools
  •  New Basel Committee Guidelines
    • Guidelines and consultative documents released in 2013
      • Leverage, RWAs, treatment of trading book, investments in equity, and CCPs
    • Impact on large, internationally active banks
    • Impact on audits and examinations

For a detailed outline and additional information on this course or to find out about our other courses, contact us at +1-646-244-5190 or [email protected]

Basel III: Credit Risk Management

Basel III is a requirement for most large, global banks. This course is designed for private sector practitioners and bank regulators who already have a basic familiarity of Basel II and III.  The program’s agenda provides a comprehensive study of Basel III’s credit risk requirements and an overview of market and operational risk requirements.  Significant attention is devoted to Basel III’s potential impact on banks and other financial institutions globally.  The three-day program is interactive and is comprised of a lecture, case studies, and topical articles to supplement discussions of recent developments in Basel III implementation, including examples from the US, Europe, Asia, and emerging markets.

Learning Objectives

Outline/Topics:

  • Identify the core concepts involved in Basel II and III for allocation of capital to credit risk using the standardized and advanced approaches
  • Compare and contrast advantages and shortcomings of Basel III
  • Work out a core theoretical quantitative/qualitative mix of statistical and business process management methods for the management of credit risk at a banking institution
  • Discuss challenges in Basel III’s implementation and possible solutions to address changes
  • Apply the concepts and skills attained during the course to work in groups and frame solutions for real-life case studies involving credit risk
  • Identify additional potential changes to Basel III in the near term

Duration: Three days

Program Level: Intermediate

Prerequisites: There are no prerequisites

CPE: 21.0 CPE Credits

Day 1
  • Framework and objectives of Basel III
    • Overview of the three pillars and their purpose
    • Application to credit, market and operations risk
  • Basel III’s scope of application
  • Basel III’s three pillars
  • Differentiating among Basel I, II and III
  • Regulatory expectations of Basel III
  • Regulatory challenges in implementing Basel III
  • Banks expectations of Basel III
    • Early challenges
      • Models and data
      • Cost
      • Capacity gaps
  • Overview of Pillar I
    • Key concepts in Pillar I
    • Components of capital
    • Basel III capital buffers
      • Capital conservation, liquidity standard, leverage, and SIFI charges
    • Application of Pillar I to credit risk
    • Standardized approach
      • Advanced approaches
      • Probability of default, exposure at default
    • Challenges with models and data in adopting this pillar
Day 2
  • Minimum Capital Requirements for Credit Risk: The Standardized Approach
    • Three approaches to credit risk measurement
    • Inputs required for Pillar I approaches
    • Requirements for Standardized Approach
  • Minimum Capital Requirements for Credit Risk: Internal Rating Based Approaches
    • Key aspects and inputs of the Foundation and Advanced Internal Rating Based approaches
    • Economic capital
    • Securitization guidance under Basel III
    • Regulatory concerns about advanced approaches
    • Basel publications on differences in Risk Weighted Assets’ application globally
Day 3
  • Pillar II and Credit Risk
    • Key concepts in Pillar II
    • Application of Pillar II to credit risk
  • Pillar III and Credit Risk
    • Key concepts in Pillar III
    • Implementation of Pillar III’s transparency elements
    • Application of Pillar III to credit risk
  • Implications of and Compliance with Basel III
    • Impact of the credit crisis on Basel III
    • US’s readiness to comply with Basel III
    • Competing views on the purpose of Basel III
    • Concerns from different countries about readiness to comply
    • Recent proposed changes to Basel III

For a detailed outline and additional information on this course or to find out about our other courses, contact us at +1-646-244-5190 or [email protected]

Basel III: Measuring & Managing Operational Risk

Frequent headlines in the financial press on developments about Basel III requirements are a regular reminder about the importance of understanding the potential changes to capital regulatory requirements in the banking sector globally.  In contrast to credit and market risks, operational risk remains poorly understood and managed.  This course is designed for finance professionals who want to increase their understanding of operational risk within the Basel II framework.  The course is interactive and is comprised of a lecture, case studies, and relevant articles to supplement discussion of recent developments of Basel II implementation.

Learning Objectives

Outline/Topics:

  • Define operational risk
  • Identify the core concepts involved in Basel II & III for allocation of capital to operations risk
  • Compare and contrast the three Basel III measurement methodologies for operational risk
  • Construct a core theoretical quantitative/qualitative mix of statistical and business process management methods for the management of operations risk at a banking institution
  • Compare and contrast advantages and challenges in the Basel II implementation
  • Apply the concepts and skills attained during the course to work in groups and frame solutions for real-life case studies involving operations risk

Duration: Two day

Program Level: Intermediate

Prerequisites: There are no prerequisites

CPE:  14.0 CPE Credits

Day 1
  • Risks Facing Financial Institutions
    • Key risk terminology
    • Financial risks that led to the Basel Accord, Basel II and Basel III
  • Overview of Basel II and III
    • Framework of Basel II and III
    • Overview of the three pillars and their purpose
    • Application to credit, market and operations risk
    • Basel II’s scope of application
    • Interconnectedness of Basel’s three pillars
    • Differentiation among Basel I, II, and III
    • Regulatory expectations of Basel III
    • Regulatory challenges in implementing Basel III
    • Bank expectations from Basel III
  • Identifying Operational Risk
    • Operational risk defined
    • Contributing factors to lag in responding to operational risk
  • Pillar I and Measuring Operational Risk
    • Key concepts in Pillar I
    • Components of capital
    • Why did BIS choose this definition?
  • Application of Pillar I to operations risk
  • Methodologies recommended by Basel III
    • Basic Indicator Approach
    • Standardized Approach
    • Advanced Measurement Approaches (AMA)
  • Challenges and best practices
Day 2
  • Monitoring Operations Risk
    • The role of monitoring operations risk
    • Best practices for monitoring operational risk
  • Pillar II and Operations Risk
    • Key concepts in Pillar II
    • Application of Pillar II to operational risk
  • Pillar III and Operations Risk
    • Key concepts in Pillar III
    • Application of Pillar III to operational risk
  • Implications of and Compliance with Basel III
    • US readiness to comply with Basel III
    • Competing views on the purpose of Basel III
    • Concerns from different countries about readiness to comply
    • How the current crisis is influencing regulators to change Basel III
    • Proposed changes to Basel III

For a detailed outline and additional information on this course or to find out about our other courses, contact us at +1-646-244-5190 or [email protected]!

Essentials of Corporate Banking

This introductory course provides a detailed overview of money, banking and financial institutions. Delivered over one day, the program is designed to introduce participants to the function of the banking system and to analyze the operations of financial intermediaries and commercial banking institutions as receivers of savings and as sources of money and credit. Topics include financial intermediation, the structure, and the function and performance of the domestic and international banking system.  The day concludes with a discussion of how monetary policy is set by central banks and what the current outlook is for interest rates in the United States and abroad.

Learning Objectives

Outline/Topics:

  • Distinguish between direct and indirect finance and discuss the roles of various market participants
  • Explain how banks act as financial intermediaries
  • Distinguish functions of different types of banks
  • Discuss sources and uses of bank capital
  • Identify and describe various wholesale corporate banking products and services
  • Explain features of corporate debt financing
  • Discuss risk management products offered to corporate banking customers
  • Explain the role of the central bank in determining interest rates
  • Discuss the regulatory environment for corporate

Duration: 1 day

Program Level:  Basic

Prerequisites:  There are no prerequisites

CPE: 7.0 CPE Credits

1 Day Program
  • Money and Banking
    • Functions of Money
    • Function of Financial Intermediaries
    • Major Elements of Domestic and International Banking Regulation
  • Commercial Banking
    • Bank Balance Sheet
    • Business Lines & Sources of Income
    • Banks as Financial Intermediaries
    • Managing Credit Risk
    • Asset – Liability Management
    • Source of Funds
    • Loan Pricing
    • International Banking and Financial Markets
  • Central Banks
    • Roles and Objectives
    • Federal Reserve
    • Bank of Japan
    • Monetary Policy
    • Deciphering a “Fed Statement”

For a detailed outline and additional information on this course or to find out about our other courses, contact us at +1-646-244-5190 or [email protected]!

Advanced Corporate Banking: Managing the Relationship

This course is designed to provide experienced corporate banking associates and employees tracking to become relationship managers with an intensive review and analysis of banking products and services that serve the commercial and corporate client.   Emphasizing the importance of relationship banking, the course will take a deep dive into the principal products that banks offer to their corporate customers. Through various case studies, participants will learn how each of these products addresses a unique need to the customer but is also part of an overall capital structure design.  Delivered by industry practitioners, the course will also highlight the importance of understanding the dynamic nature and influence of capital markets on decision making by corporate customers.

Learning Objectives

Outline/Topics:

  • Define a corporate customer’s financing needs
  • Explain the influence of capital markets conditions on financing options
  • Describe and analyze various products that your bank could provide to a corporate customer
  • Construct a capital structure solution for a corporate client
  • Identify corporate banking needs of various customer-types
  • Construct hedging opportunities
  • Create multi-service opportunities
  • Define the role of a relationship manager

Duration: Two days

Program Level:  Advanced

Prerequisites:  There are no prerequisites

CPE:  14.0 CPE Credits

Day 1
  • Defining the clients’ needs
    • Cost of capital
    • Capital structure
    • Risk exposures
    • Risk management & active hedging
  • Capital market conditions
    • International and US equity markets
    • Central bank policy and interest rate outlook
    • Macroeconomic conditions
    • Public versus private placements
  • Types of banking relationships
    • Management expectations about a banking relationship
    • How well do you know your client
    • Initial multi-service opportunities
  • Bank Debt Funding
    • Loan Finance
    • Types of loans
    • Pricing
    • Legal issues in lending
    • Structuring elements
    • Collateral
    • Covenants
    • Syndications
    • Representations and warranties
    • Regulatory Impact
    • Regulatory capital
    • Liquidity
    • Leverage
  • Capital Market Offerings
    • Private Placements
    • Regulatory issues
    • Qualified buyers
    • Motivations
    • Bonds, Hybrids & Convertibles
    • Motivation for issuers
    • Investor appetite
    • Prepayment
    • Capital structure implications
    • Ratings and ratings implications
    • Capital providers
    • Pricing & all-in cost
    • Issuer decision making and RM influence
Day 2
  • Corporate Banking Services
    • Foreign Exchange
    • Assessment of customer exposure and risk
    • Hedging alternatives
    • Forward, futures and options
    • Interest Rate Derivatives
    • Interest Rate Swaps
    • Applications
    • Credit Default Swaps
  • Treasury Management
    • Function and roles
    • Cash Management & Funding
    • Asset-Liability Management
  • Asset Back Finance
    • Securitization
    • Motivation
    • Types of issuers
    • Process
    • Mortgage model
    • Receivables
    • Other assets
  • Money Markets
    • Commercial Paper
    • Market Size
    • Characteristics
    • Issuer types
  • Repos & Repo Market
    • Repo Users
    • Repo mechanics
    • Repo characteristics
  • Strategic Approach to Relationship Management
    • Understanding and identifying corporate needs
    • Designing corporate financial solutions
    • Making the case for a banking relationship

For a detailed outline and additional information on this course or to find out about our other courses, contact us at +1-646-244-5190 or [email protected]!