Search results “Bank regulation credit risk”
Basel III in 10 minutes
This video explains Basel III capital requirement Vs Basel II For more information about Basel III please visit our full course https://www.udemy.com/credit-risk-management/#/
Views: 127034 Finance Club
Types of risks in banking | Risk Management in Banking sector | Types of risks in banking sector
In this video we have discussed Types of risks in banking sector and Risk Management in Banking sector which is very important for IBPS PO,IBPS Clerk,SBI Clerk,SBI PO,Syndicate Bank PO,Canara Bank PO and various other banking examinations. In this video we have categorically described risks in banking sector such as credit risk, market risk, operational risk etc. The major risks in banking business or ‘banking risks’, explained in this video with proper time stamp are : 1. Credit or Default Risk 03:50 2. Market Risk 11:50 3. Operational Risk 15:04 4. Liquidity Risk 18:37 5. Business Risk 20:23 6. Reputational Risk 21:51 7. Systemic Risk 23:41 8. Moral Hazard 24:51 9. Final discussion 27:02
Views: 34786 BANKING SUTRA
How can banks mitigate regulatory compliance risks?
How do you get a handle of the risks and contingent liabilities within your financial agreements? Thomson Reuters Financial Trade Documentation Services helps banks overcome the external pressure from regulators looking to make the markets more transparent, efficient and safer, and the internal pressures to be more cost-effective and leaner. Through a collaborative, consultative relationship and acting as an extension of the team, Thomson Reuters will help streamline processes, control costs and reduce regulatory compliance risks in your financial institution. Learn more at http://legalsolutions.com/financial-trade
Views: 6946 Thomson Reuters Legal
Basel Accord|Financial & Banking Regulation
In this video you will learn about the basics of Basel accord, which introduces Basel I , Basel II & Basel III. Basel committee is a financial regulatory body that formulates norms for the banks. These norms or guidelines are mandatory for the banks to follow so that banks can solvent Learn Credit Risk Modelling(PD, LGD, EAD Modelling) : http://analyticuniversity.com/credit-risk-analytics-study-pack/ http://analyticuniversity.com/ For training, consulting or help Contact : [email protected] For Study Packs : http://analyticuniversity.com/
Views: 36169 Analytics University
Basel 1 Credit Risk Management in Hindi
Basel 1 / Basel I accords/norms in detail. Pitfalls of basel 1. what is tier I capital? what is tier 2 capital? What is capital? What is bank capital? How basel impacted banks? Pitfalls of Basel 1? All explained in detail GET 3000+ JAIIB PREVIOUS YEAR QUESTIONS, Study Notes, Videos https://goo.gl/M8zMrV ------------------------------------------------------------- GET 4000+ CAIIB PREVIOUS YEAR QUESTIONS, Study Notes, Videos https://goo.gl/QGq6Sc Foreign Exchange Rates https://www.youtube.com/watch?v=WTBJiSxqX2E FEMA - Foreign Exchange Management Act 1999 FOREX https://www.youtube.com/watch?v=wFj4GH8KfVY Standard Deviation, Variance in 2 minutes https://www.youtube.com/watch?v=Rabn5sZpGmo Foreign Exchange Spot rate Forward rate Buying rate https://www.youtube.com/watch?v=z4m4kWfe0UU Caiib BFM case study on Risk Weighed Assets https://www.youtube.com/watch?v=_80CvrvY3SM case study on Risk Weighed Assets Part 2 https://www.youtube.com/watch?v=SI7o6in1nmk GDP Cost Factor, Debt Equity Ratio, Elasticity https://www.youtube.com/watch?v=XsSjnRygk3s Case Study on Ratio Analysis https://www.youtube.com/watch?v=oMj08U679eQ Case Study on Balancesheet Part 2 https://www.youtube.com/watch?v=NX5k5l_xQiw Case Study on Balancesheet (ABM) https://www.youtube.com/watch?v=dT5wcOuyOxA Legal Banking Questions PART 8: https://www.youtube.com/watch?v=SOwuB6f-VvA Legal Banking Questions PART 7: https://www.youtube.com/watch?v=V5ecuqkYDlc Legal Banking Questions PART 6: https://www.youtube.com/watch?v=g49gW5aqHUY Legal Banking Questions PART 5: https://www.youtube.com/watch?v=dT5cE9u9z0A Legal Banking Questions PART 4: https://www.youtube.com/watch?v=p5GEsfu9ZUM Legal Banking Questions PART 3: https://www.youtube.com/watch?v=YtQHiQ3xsEY Legal and Regulatory Aspects of banking Imp Ques PART 2 https://www.youtube.com/watch?v=yHrxOa8W31A Legal Banking Questions PART 1 https://www.youtube.com/watch?v=_7N3nBm7E8M Basel 1 Basel 2 Basel 3: https://www.youtube.com/watch?v=x_sOTObwx7g SARFAESI ACT 2002: https://www.youtube.com/watch?v=NFP--aVBrN8 Joint Liability Group: https://www.youtube.com/watch?v=EwHr4kbYtb4 Self Help Group: https://www.youtube.com/watch?v=Aw2E4wGC6XY Hypothecation: https://www.youtube.com/watch?v=LfyMNVKBttY Pledge: https://www.youtube.com/watch?v=SeOj8iSo1-E Banking Ombudsman https://www.youtube.com/watch?v=yk_qkutLzXY Protection to paying banker https://www.youtube.com/watch?v=T5E41Xd9rbs Letter of Credit and Its Types https://www.youtube.com/watch?v=kZG7KVz6ADA Banking Regulation Act 1949 Important Sections https://www.youtube.com/watch?v=5-acwfsYTAw Reserve Bank of India Act 1934 https://www.youtube.com/watch?v=YCHbT9NFVO4 NRO NRE FCNR Accounts https://www.youtube.com/watch?v=q-MGkikmGeE convention of conservatism https://www.youtube.com/watch?v=zvImhmWTKjY Business Entity Concept https://www.youtube.com/watch?v=Wv23h0PP1w8 Cost Concept https://www.youtube.com/watch?v=thNux_mQ3kU Money Measurement Concept https://www.youtube.com/watch?v=6la8X5VTuLg Petty Cash Book Voucher Imprest System of Petty Cash https://www.youtube.com/watch?v=9MRIIlEga3s JAIIB Important memory recalled questions AFB 3 https://www.youtube.com/watch?v=QXQfaEK2oIo JAIIB Important memory recalled questions AFB https://www.youtube.com/watch?v=MwbO4QJGLxM Internal rate of return https://www.youtube.com/watch?v=cgcY0vsINtE Straight Line Method Depreciaiton https://www.youtube.com/watch?v=9Y4kYoYSS-U Accounting and finance definitions and important concepts https://www.youtube.com/watch?v=9ZEtvgYVyPQ Accounting and finance imp Numerical: https://www.youtube.com/watch?v=oYDWCpmGJfw NOSTRO ACCOUNTS https://www.youtube.com/watch?v=cNESYz3lc6Y Vostro Accounts https://www.youtube.com/watch?v=1hIjjnxtKmw How to Calculate EMI [VIDEO in हिंदी ] https://www.youtube.com/watch?v=KwIDmbT2Tts Internal Rate of Return: https://www.youtube.com/watch?v=cgcY0vsINtE Yield to Maturity: https://www.youtube.com/watch?v=KL7Jn99RIKI Letter of Credit: https://www.youtube.com/watch?v=kZG7KVz6ADA ___________________________________________________ Important Question Principles & Practices of banking ___________________________________________________ Part 1: https://www.youtube.com/watch?v=4AnaI4QCtrM Part 2: https://www.youtube.com/watch?v=5p9BMivJyyg JAIIB Important memory recalled questions PPB https://www.youtube.com/watch?v=dKAYCHcfAfQ join whatsapp group https://chat.whatsapp.com/1fUrovD1W2ICxHqAUx82Kv -~-~~-~~~-~~-~- Please watch: "Protection to Collecting Banker NI Act Legal and Regulatory Aspects of Banking JAIIB" https://www.youtube.com/watch?v=V-hiw3njkak -~-~~-~~~-~~-~-
Views: 4202 Learning sessions
6 - Risk management in banks
Banking Awareness "Risk management in banks" IBSP/SBI PO, Best shortcuts , tricks and approaches For more video and Online test series visit at http://mocktime.com like us on Facebook https://www.facebook.com/mocktimeofficial/
Views: 27121 Mock Time
Financial Regulation - Capital Ratios for Banks
​This revision video looks at the importance of capital ratios for commercial banks as part of the regulatory system designed to maintain financial stability.
Views: 5193 tutor2u
The Fed Explains Bank Supervision and Regulation
Healthy banks and healthy economies go hand in hand. The latest in the Atlanta Fed’s animated video series explains how the Federal Reserve ensures banks are doing business safely and providing fair and equitable services to their communities.
Views: 23236 AtlantaFed
13. Banks
Financial Markets (2011) (ECON 252) Banks are among our enduring of financial institutions. Their survival in so many different historical periods is testimony to their importance. Professor Shiller traces the origins of interest rates from Sumeria in 2000 BC, to ancient Greece and Rome, up to the Song Dynasty in China between the 10th and the 12th century. Subsequently, he looks at banking in Italy during the Renaissance and at the goldsmith bankers in 16th and 17th century England. Banks have survived so long because they solve adverse selection and moral hazard problems. Additionally, he covers Douglas Diamond's and Philip Dybvig's model, which does not only analyze the banks' role for liquidity provision, but also reveals the possibility of bank runs. This leads Professor Shiller to deposit insurance as a means to prevent bank runs. He discusses the Federal Deposit Insurance Corporation as well as the Federal Savings and Loans Insurance Corporation, together with the role that the latter played during the savings and loan crisis of the 1980s. The necessity to regulate banks in the presence of deposit insurance results in a discussion of the role of the Basel commission and an explicit calculation to illustrate the core principles of Basel III. At the end, Professor Shiller provides an overview of financial crises since the beginning of the 1990s, with the Mexican crisis of 1994-1995, and the Asian crisis of 1997. 00:00 - Chapter 1. Introduction 02:52 - Chapter 2. Basic Principles of Banking 10:46 - Chapter 3. The Beginnings of Banking: Types of Banks 24:00 - Chapter 4. Theory of Banks: Liquidity, Adverse Selection, Moral Hazard 33:03 - Chapter 5. Bank Runs, Deposit Insurance and Maintaining Confidence 41:07 - Chapter 6. Bank Regulation: Risk-Weighted Assets and Basel Agreements 53:27 - Chapter 7. Common Equity Requirements and Its Critics 01:02:49 - Chapter 8. Recent International Bank Crises Complete course materials are available at the Yale Online website: online.yale.edu This course was recorded in Spring 2011.
Views: 75212 YaleCourses
Module B - Risk Management - Topic 10 Part 1
Topic 10 - Risk Regulations in Banking Industry - Part 1
BFM - Module B - Unit 10 - Risk Regulations in Banking Industry - Basel III (Part I)
Unit 10 - Risk Regulations in Banking Industry - Basel III (Part I)
How to calculate Basel-3 Capital for Risk Weighted Assets - CAIIB-BFM-Case Study
Through a case study, this video explains the method, as to how to calculate capital requirement for a asset portfolio of a bank. Very useful for CAIIB exam and JAIIB exam
Views: 62525 Ns Toor
Optimal Bank Regulation In the Presence of Credit and Run Risk
Optimal Bank Regulation In the Presence of Credit and Run Risk. Expositor Dimitrios Tsomocos, Ph.D Professor of Financial Economics SAÏD Business School and St. Edmund Hall University of Oxford. Julio 13 de 2018. El Banco de la República y la Maestría en Ciencias en Finanzas invitan al Seminario de Investigación en Finanzas. Julio 13 de 2018. Idioma de la presentación: inglés. Abstract We modify the Diamond and Dybvig (1983) model of banking to jointly study various regulations in the presence of credit and run risk. Banks choose between liquid and illiquid assets on the asset side, and between deposits and equity on the liability side. The endogenously determined asset portfolio and capital structure interact to support credit extension, as well as to provide liquidity and risk-sharing services to the real economy. Our modifications create wedges in the asset and liability mix between the private equilibrium and a social planner’s equilibrium. Correcting these distortions requires the joint implementation of a capital and a liquidity regulation. Kashyap, Anil K. and Tsomocos, Dimitrios P. and Vardoulakis, Alexandros, Optimal Bank Regulation in the Presence of Credit and Run Risk (September 2017). Saïd Business School WP 2017-17. Available at SSRN: https://ssrn.com/abstract=3048376
Recent Developments in Bank Risk Rating Systems
While the appropriate level of complexity of a Bank’s Risk Measurement System is specific to each institution and portfolio type – and we know that- one size does not fit all -- we are seeing more and more Banks adopting a “dual risk ratings” process. I should note that a risk rating should not be confused with a credit rating issued by a credit rating agency. In this dual system, the probability of default (PD) is estimated separately from the loss given default (LGD). The expected loss for a given loan is then calculated as their product. This method is also among several valid options for estimating expected credit loss explicitly contemplated in F.A.S.B.’s (Financial Accounting Standards Board) proposed standards update, called the current expected credit loss (CECL) model. This indicates that Banks are already thinking about ways to replace the existing incurred-loss estimation approach to an expected loss type of model. And as we know, the allowance for credit losses is one of the most significant estimates on a Bank’s financial statement and regulatory report because it has a direct impact on earnings. Dual risk rating systems that separate PD and LGD assessments have initially emerged because a single risk rating may not support all of the functions that require credit risk evaluations. Borrower risk ratings typically support deal structuring and administration, while facility risk ratings support Allowance for Loan and Lease Losses (ALLL) and capital estimates. So how do Banks build these systems in practice? For banks with sufficient internal data, PD, LGD, and EAD models are typically based in large part on the bank’s own historical default and loss experience. However, most banks lack sufficient data for creating such models. Banks that find themselves in this situation have several options: • First, it is often possible, for example for Community Banks with relatively straightforward portfolios, to estimate expected loss directly (without going into individual components), based on their historical loss experience coupled with a judgmental assessment of the current economic environment. • Second, banks can build robust custom PD or LGD models based on external data, such as that which is provided by S&P Global Market Intelligence, which can be sampled in such a way as to represent the bank’s own portfolio. • And the third option for banks facing data constraints is the use of vendor models and scorecards to estimate PD and LGD—and, in turn, expected loss. These models should be reviewed to make sure they are appropriate relative to the composition of the bank’s loan portfolio. Out-of-sample validation, calibration, and benchmarking are all common exercises we perform to ensure that the model is applicable. In practice, we find that often times banks prefer to rely on vendor models and scorecards regardless of their internal data situation, since such models have undergone model validation, are maintained by the vendor, and represent leading industry practices. In summary, the dual risk rating system requires a risk rating on the credit worthiness of the borrower and a risk rating based on the facility of the loan. The two risk ratings are then combined using a matrix such as the one shown on this slide to develop an overall composite loan quality risk rating. That’s all for today, but if you are interested in learning more about this topic, or any of the solutions we covered, please complete the short form that will appear on your screen. Thank you for watching.
Model Risk Management for Banks and non-Banks
At the August 21, 2014 Chicago, Illinois GARP Chapter Meeting, a professional panel discusses how model validation differs between banks and non-banks, and practical challenges that affect all model validation teams as they seek to add value, and to appropriately size and scope their effort. Panelists: Michelle McCarthy, Chicago Chapter Director, Board of Trustees Member, and Buy-Side Risk Managers Forum Member, Global Association of Risk Professionals (GARP); Managing Director, Risk Management, Nuveen Investments Nav Vaidhyanathan, GARP Chicago Chapter Committee Member; Director, Head of Model Risk Management, Wintrust Financial Corporation Moderator: Robert M. Reed, GARP Chicago Chapter Committee Member; Director, Enterprise Risk Management, Options Clearing Corporation (OCC) Learn more about GARP Chapters: http://bit.ly/1l7ZOO8 Click here http://bit.ly/1l7ZUVW for more GARP Chapter Meeting presentations.
Views: 12264 GARPvideo
Counterparty Risk, Credit Exposure and CVA - Dr. Jon Gregory
Counterparty Risk, Credit Exposure and CVA: http://www.londonfs.com/programmes/Counterparty-Risk-and-Collateral-Management/Outline/ Dr. Jon Gregory explains Counterparty Credit Risk and its growing importance in current financial markets. The consequences for financial institutions that are not prepared to manage these risks include increased capital ratios, lower margins, and major liquidity issues in extreme cases. Jon Gregory is the author of "Counterparty Credit Risk: The new challenge for global financial markets (The Wiley Finance Series)", now in its second edition. This video was produced by London Financial Studies.
Financial Regulation in the UK
​This revision video looks at the tripartite system of financial regulation in the UK
Views: 8235 tutor2u
FRM: Basel II Overview
Quick overview of Basel II framework that sets capital requirements for banks. Three pillars contains the rules & support (supervisor review, market discipline) that say how much eligible regulatory capital must be held against risk-weighted assets. For more financial risk videos, visit our website! http://www.bionicturtle.com
Views: 125986 Bionic Turtle
Credit Risk Basics - Approaches to Calculate Credit Risk - 08
Basics of Credit Risk - Standardized Approach & Internal Rating based Approach - Session - 08
Banking & Financial Intermediation: Concepts, Risks, Capital & Regulation | IIMBx on edX
Take this course for free on edx.org: https://www.edx.org/course/banking-financial-intermediation-concepts-risks-capital-regulation Learn about banking and financial intermediation as well as credit, operational, off-balance sheet, liquidity & solvency risks and Basel guidelines. This course, part of the Professional Certificate Program ‘Risk Management in Banking and Financial Markets’, will help you understand the theories and the macroeconomic context governing banking and financial intermediation as well as measures to manage credit risk, off-balance sheet risk, operational risk, liquidity risk and solvency risk, including Basel guidelines on capital adequacy. Banks and other financial intermediaries make up a large part of the ‘ecosystem’ that channelizes money from those who have it (i.e. savers/investors) to those who need it (i.e. borrowers). Central Banks in most countries also use that ecosystem to effectively manage money supply (liquidity) and to safeguard the stability of the financial system. This course will look at the products and services offered by banks and financial intermediaries and the significant complexities and risks they encounter in conducting their business in a globally interconnected world. It will address in detail the embedded risks in banking and financial intermediation such as credit risk, off-balance sheet risk, operational risk, liquidity risk, solvency risk, etc., and how these risks are identified, measured and managed, using several risk mitigation techniques and regulatory mechanisms. This course is part of IIMBx's Professional Certificate program ‘Risk Management in Banking and Financial Markets’.
Views: 495 edX
PRMIA: Counterparty Credit Risk and Credit Value Adjustment by Jon Gregory.wmv
Counterparty Credit Risk and Credit Value Adjustment: The Continuing Challenge for Global Financial Markets Presented by Jon Gregory, Partner at Solum Financial This webinar recording covers: Failures of large financial institutions and sovereigns, leading to bankruptcies and dramatic bailouts have thrust counterparty credit risk heavily into the spotlight as the key element of financial risk management. The sudden realisation of extensive counterparty risks has severely compromised the balance sheets of banks globally, the health of global financial markets and state of the general economy. Understanding and managing counterparty risk and CVA (credit value adjustment) has become a key problem for all financial institutions. In this webinar, I will outline some of the key challenges within the counterparty risk and CVA areas and discuss some related problems. The complexity in defining and quantifying CVA will be described and I will discuss some classic problems such as debt value adjustment (DVA) and wrong-way risk. I will discuss the impact of regulation, in particular the Basel 3 capital requirements and the role of central counterparties. Finally, I will discuss the impact of related issues such as funding value adjustment (FVA) and OIS discounting.
Views: 22489 Anne Jones
Bank financial management module B
Views: 907 iNiTiATivE
BASEL Norms and Risk Management in Banks
Module 21 Chapter 1
Views: 1759 Bankedge Academy
INOK - online credit risk assessment
INOK service for online credit risk assessment. For assessing credit risk of a client INOK uses all the information which bank already has about the client. It doesn't require fulfillment of any questionnaires. INOK works through internet banking, mobile banking or at branch. Simplified: INOK is a loan officer who works always and everywhere.
Views: 169 GO Studio
BFM - Module B - Unit 10 - Risk Regulations in Banking Industry - Basel III (Part II)
Unit 10 - Risk Regulations in Banking Industry - Basel III (Part II)
Risk Management in FinTech Innovation
The FinTech revolution has transitioned from disruptive competition to partnership with financial services companies. But it is still disruptive. New partners, new technologies, and new products are resulting, to the benefit of consumers, businesses and banks. But where is the risk management organization in all this?
Views: 765 Graham Seel
Top 5 tips to understand counterparty credit risk
Laura Ballotta, Senior Lecturer in Financial Mathematics, Cass Business School, offers her top 5 tips to be able to better understand counterparty credit risk. She will discuss this in more depth at Global Derivatives in May 2016, where she will talk about Integrated Structural Approach To Counterparty Credit Risk With Dependent Jumps. Find out more at www.globalderivativeslive.com.
Views: 1581 QuantMinds TV
#2 - Credit Risk Overview, Joe Pimbley
Short summary for all credit risk videos in this series
Views: 5829 Joe Pimbley
[221] Middleton and Randazzo on bank capital and bank regulation
At the G20 summit this November, the Federal Reserve will announce new and broader capital requirements for US banks. The market’s bet is that the Fed will require loss-absorbing capital -- which includes equity and debt --- to be somewhere between 20-25% of risk-weighted assets. Erin weighs in. Then, Erin is joined by Anthony Randazzo, director of economic research at the Reason Foundation. According to new regulations (to be decided soon), too-big-to-fail US banks might have to issue at least $260 billion of senior unsecured debt as a buffer between equity capital and deposits. Anthony gives us his take on this and whether or not it’s warranted. After the break, Erin talks to Reggie Middleton – CEO of Veritaseum and inventor of Ultracoin – to talk about banks and bank shares. Reggie also tells us how he thinks banks will respond to Bitcoin and what impact the Internet will have on financial services. And in The Big Deal, Erin and Edward Harrison discuss European stress tests. Eleven firms will fail the exercise and need more capital as credit in Europe contracts. Edward and Erin discuss the implications. Take a look! Check us out on Facebook: http://www.facebook.com/BoomBustRT https://www.facebook.com/harrison.writedowns https://www.facebook.com/erinade2020 Follow us @ http://twitter.com/ErinAde http://twitter.com/edwardnh
Views: 3583 Boom Bust
Liquidity Risk Management | Basel 3
An introduction to Liquidity Risk Management in Banks, using components of the corresponding module found under Optimal MRM's e-Learning service. The full presentation includes measurement exercises in Excel and guides subscribers as they practice the concepts and techniques presented in a hands-on manner. We invite you to attend a complimentary e-Learning demo module (http://www.optimalmrm.com/services/elearning-catalog/17-banks/22-basel/) to experience how Optimal MRM delivers a practical understanding of risk in a rich and interactive manner.
Views: 21013 Optimal MRM
(3/4)Basel Norms 1, 2, 3 - Banking Reforms | All you Need to Know | Explained by M K Yadav
To get Session PPT & Other Free Notes : https://goo.gl/321hSE Join Telegram to access Daily Current Affairs Notes: https://t.me/currentaffairsmkyadav BASEL NORMS 1. Basics : 1.1 Need of Basel Norms, 1.2 Containment of Risks, 1.3 Bank for International Settlements 2. Type of Capital : 2.1 Tier 1 Capital : Paid up Capital, Statutory Reserve, Disclosed Reserve 2.2 Tier 2 Capital : Subordinate debt, Preference shares, undisclosed reserves 2.3 Risks Types : Credit, Market & Operational risks 3. Basel - 1 Norms : Need, Achievements & Shortcomings 4. Basel - 2 Norms : Need, Achievements & Shortcomings 5. Basel - 3 Norms : 5.1 Need 5.2 Better capital quality requirement 5.3 Counter-cyclical buffer 5.4 Leverage ratio 5.5 Liquidity coverage ratio(LCR) 5.6 Net Stable funding ratio(NSFR) 5.7 Global - Systematically Important Banks(G-SIB's)
Views: 60690 MK Yadav - theIAShub
Top Risks for Financial Services
Learn more at PwC.com - http://pwc.to/1jZczC1 PwC's Chris Matten discusses the top risk for FS institutions, including operational risk, credit risk, regulations, and trust.
Views: 1375 PwC
Credit Risk Dashboard_Microstrategy
The Credit Risk Management Dashboard helps the Chief Risk Officer (CRO) of Corporate/ Wholesale/ Commercial Banking Division of mid to large size bank to manage the bank's credit risk profile. The Dashboard helps in visualizing consolidated exposure across sectors and credit rating. The KPIs include Probability of defaults, Exposure at default, Loss given default and Expected loss.
Views: 2277 InfoCepts
What is RISK-WEIGHTED ASSET? What does RISK-WEIGHTED ASSET mean? RISK-WEIGHTED ASSET meaning - RISK-WEIGHTED ASSET definition - RISK-WEIGHTED ASSET explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. SUBSCRIBE to our Google Earth flights channel - https://www.youtube.com/channel/UC6UuCPh7GrXznZi0Hz2YQnQ Risk-weighted asset (also referred to as RWA) is a bank's assets or off-balance-sheet exposures, weighted according to risk. This sort of asset calculation is used in determining the capital requirement or Capital Adequacy Ratio (CAR) for a financial institution. In the Basel I accord published by the Basel Committee on Banking Supervision, the Committee explains why using a risk-weight approach is the preferred methodology which banks should adopt for capital calculation. it provides an easier approach to compare banks across different geographies, off-balance-sheet exposures can be easily included in capital adequacy calculations, banks are not deferred from carrying low risk liquid assets in their books. Usually, different classes of assets have different risk weights associated with them. The calculation of risk weights is dependent on whether the bank has adopted the standardized or IRB approach under the Basel II framework. Some assets, such as debentures, are assigned a higher risk than others, such as cash or government securities/bonds. Since different types of assets have different risk profiles, weighting assets according to their level of risk primarily adjusts for assets that are less risky by allowing banks to discount lower-risk assets. In the most basic application, government debt is allowed a 0% "risk weighting" - that is, they are subtracted from total assets for purposes of calculating the CAR. A document was written in 1988 by the Basel Committee on Banking Supervision which recommends certain standards and regulations for banks. This was called Basel I, and the Committee came out with a revised framework known as Basel II. More recently, the committee has published another revised framework known as Basel III. The main recommendation of this document is that banks should hold enough capital to equal at least 8% of its risk-weighted assets. The calculation of the amount of risk-weighted assets depends on which revision of the Basel Accord is being followed by the financial institution. Most countries have implemented some version of this regulation.
Views: 4408 The Audiopedia
Regulating risk taking in banks
Commissioner Bart Chilton breaks down the details of the new rules. More from CNN at http://www.cnn.com/
Views: 1966 CNN
Basel iii, A global regulatory framework for more resilient banks and banking systems
http://www.basel-iii-association.com/Reading_Room.html Welcome to the Reading Room of the Basel iii Compliance Professionals Association, the largest association of Basel iii Professionals in the world. The objective of the Basel 3 reforms, is to improve the banking sector’s ability to absorb shocks, arising from financial and economic stress, whatever the source, thus reducing the risk of spillover from the financial sector to the real economy. The Basel Committee’s comprehensive reform package addresses the lessons of the financial crisis. Through its reform package, the Basel Committee aims to improve risk management and governance, as well as strengthen banks’ transparency and disclosures. A strong and resilient banking system, is the foundation for sustainable economic growth, as banks are at the centre of the credit intermediation process between savers and investors. The Basel Committee is raising the resilience of the banking sector, by strengthening the regulatory capital framework, building on the three pillars of the Basel 2 framework. The reforms raise both, the quality and quantity of the regulatory capital base, and enhance the risk coverage of the capital framework. The basel Committee is also introducing a number of macroprudential elements into the capital framework, to help contain systemic risks. It is critical that banks’ risk exposures are backed by a high quality capital base. The crisis demonstrated that credit losses and writedowns, come out of retained earnings, which is part of banks’ tangible common equity base. It also revealed the inconsistency in the definition of capital across jurisdictions, and the lack of disclosure, that would have enabled the market to fully assess and compare the quality of capital between institutions. To this end, the predominant form of Tier 1 capital, must be common shares and retained earnings. Innovative capital instruments, with an incentive to redeem, through features such as step-up clauses, will be phased out. Supervisory authorities must be able to assure themselves, that banks using models, have risk management systems that are conceptually sound, and implemented with integrity. Strong capital requirements are a necessary condition for banking sector stability, but by themselves are not sufficient. A strong liquidity base, reinforced through robust supervisory standards, is of equal importance. Before Basel 3, we had no internationally harmonised standards in this area. The Basel Committee is introducing internationally harmonised global liquidity standards. As with the global capital standards, the liquidity standards will establish minimum requirements, and will promote an international level playing field, to help prevent a competitive race to the bottom. During the early “liquidity phase” of the financial crisis, many banks – despite adequate capital levels – still experienced difficulties, because they did not manage their liquidity in a prudent manner. The rapid reversal in market conditions, illustrated how quickly liquidity can evaporate, and that illiquidity can last for an extended period of time. The difficulties experienced by some banks, were due to lapses in basic principles of liquidity risk management. In response, as the foundation of its liquidity framework, the Committee has published the “Principles for Sound Liquidity Risk Management and Supervision.” To complement these principles, the Basel Committee has further strengthened its liquidity framework, by developing two minimum standards for funding liquidity. An additional component of the liquidity framework, is a set of monitoring metrics, to improve cross-border supervisory consistency. Do you want to learn more? Sign up to receive our monthly newsletter at no cost. Compliance with the Basel iii framework is a moving target, as regulators continue to develop new standards and regulations and amend the previous ones. The Basel iii Compliance Professionals Association is the largest association of Basel iii Professionals in the world. You can easily subscribe at the Reading Room of the association at: http://www.basel-iii-association.com/Reading_Room.html
Module B - Risk Management - Topic 10 Part 2
Topic 10 - Risk Regulations in Banking Industry - Part 2
Monetary Policy, Regulation, And Government Support Pose Ongoing Credit Risks To Global Banks
Monetary policy, regulation, and government support continue to pose credit risks to banks across the globe. In this CreditMatters TV segment, Standard & Poor's Managing Director Rodrigo Quintanilla explains how these factors impact bank ratings.
Views: 36 SPTVbroadcast
INSEAD Risk Management in Banking
The Risk Management in Banking programme provides an overview of risk governance and long-term value creation in light of new regulations, Basel 3 and special resolution regimes with bail-in debt. You will learn through lectures, discussion, work groups and computer simulation which is designed at INSEAD to recreate an international banking environment. The programme is built on more than 30 years of research organised by the Centre for International Financial Services, a long-standing partnership between INSEAD and selected financial institutions. Download Brochure: https://www.insead.edu/executive-education/finance/risk-management-banking-download-brochure
Views: 1577 INSEAD
Internal Risk Models
João A. C. Santos investigates the incentive for banks to bias risk estimates reported to regulators. When compared to estimates of credit risk within loan syndicates, banks with less regulatory capital appear to report lower risk. If you experience technical difficulties with this video or would like to make an accessibility-related request, please send a message to [email protected]
Larry Lee Vlog 024  - Moody's CECL Summit 2018
credit risk analytics,analytics,moody's analytics,cecl,risk analytics,banking and lending,retail banking,financial analytics,credit union,credit forecasting,credit risk,credit trends,credit losses,credit,banks,cecl model,moody's corporation,data,loan forecasting,accounting standard,macroeconomic,moody's,earnings,data preparation,machine learning,scenarios,primatics,migrations,statistical models,regulations,financial technology,moodys,models
Views: 57 Larry Lee
Sound Risk Management at SA Banks
(www.abndigital.com) South African banks have emerged relatively unscathed from the global financial crisis, and ahead of most international peers. Standard & Poor's Ratings Services believes that this was largely due to their sound risk-management practices and adequate regulation. Standard & Poor's primary South African bank credit analyst Matthew Pirnie joins ABN in studio.
Views: 444 CNBCAfrica
What's wrong with banking regulation today?
Indebtedness is both a consumer and a financial industry problem. Regulatory bodies think more banking regulations will fix the problem. INSEAD Professor of Banking and Finance Jean Dermine is not so sure.
Views: 6041 INSEAD
Quantifi and Risk Dynamics Webinar - Managing Counterparty Credit Risk Capital Charge
There is currently a strong market focus on counterparty credit risk and more specifically on Credit Valuation Adjustment (CVA). The attention is predominantly towards the issue of efficient CVA pricing as opposed to implications in terms of risk management and capital requirements. However, since the recent crisis, another issue has gained prominence; the significant losses that counterparty credit risk can cause if not properly managed. Topics Covered Comparing capital requirements Identifying inconsistencies in prudential regulations Applying various capital approaches to typical portfolio strategies observed within financial institutions Highlighting the challenges financial institutions face in the implementation of Basel lll regulation Key findings from a recent, Quantifi and Risk Dynamics, industry survey 'Your Approach to Counterparty Risk and Basel lll' Presenters Dr. Dmitry Pugachevsky, Director of Research, Quantifi Aurélie Civilio, Senior Consultant, Risk Dynamics
Views: 398 Quantifi
What is Basel?
Welcome to the Investors Trading Academy talking glossary of financial terms and events. Our word of the day is “Basel” An attempt to reduce the number of bank failures by tying a bank's capital adequacy ratio to the riskiness of the loans it makes. For instance, there is less chance of a loan to a government going bad than a loan to, say, an internet business, so the bank should not have to hold as much capital in reserve against the first loan as against the second. The first attempt to do this worldwide was by the Basel committee for international banking supervision in 1988. However, its system of judging the relative riskiness of different loans was crude. For instance, it penalized banks no more for making loans to a fly-by-night software company in Thailand than to Microsoft; no more for loans to South Korea, bailed out by the IMF in 1998, than to Switzerland. In 1998, "Basel 2" was proposed, using much more sophisticated risk classifications. However, controversy over these new classifications, and the cost to banks of administering the new approach, led to the introduction of Basel 2 being delayed until (at least) 2005. By Barry Norman, Investors Trading Academy - ITA
Financial Risk | Introduction Financial Risk Analytics
This is an introductory session on the course 'Introduction to Financial Analytics' . In this class you will learn about what is financial risk and what are the different types of financial risks that banks face For Study Packs visit - http://analyticuniversity.com/
Views: 16548 Analytics University
Advanced Credit Risk Management | DelftX on edX | Course About Video
Take this course on edX: https://www.edx.org/course/advanced-credit-risk-management-delftx-advcrm1x ↓ More info below. ↓ Follow on Facebook: https://www.facebook.com/edX Follow on Twitter: https://www.twitter.com/edxonline Follow on YouTube: https://www.youtube.com/user/edxonline About this course This course covers cutting-edge topics of credit risk management in a rigorous yet inspiring way. The playing field of credit risk professionals, consultants and managers is continually changing. Developments in financial markets and updates in regulatory frameworks make it a challenging field that makes it vital for you to stay on top of your game. But how? The Advanced Credit Risk Management course from TU Delft, a course designed specifically for risk professionals, provides a unique opportunity to take the next step in credit risk management and helps you in contributing to the stability and economic sustainability of lending institutions. This course is for anyone who wants or needs a deeper understanding of credit risk topics in order to advance current work tasks or support future professional development. The course balances between theory and practice to make it both challenging and valuable for your work. But the course is not just about increased knowledge: you will have the opportunity to interact with peers from different countries and institutions; you will receive feedback from the lecturer, and have the chance to choose together with other course members, one additional topic on which Dr. Cirillo will elaborate further. In addition, close collaboration with industry partners will give you the chance to be acquainted with different voices from the field, and discuss your views with other experts. Key Benefits For individuals: Learn the latest, high-level knowledge on credit risk management and risk modelling. Update one’s knowledge on the new regulatory frameworks. Combine theory and practice to help you to stay on top of your profession. Enhance your employability and career opportunities. Lively interaction with international peers and networking opportunities. For organizations: Increase your organizational knowledge to include updated and cutting-edge credit risk management concepts. Enhance your capability to implement the evolving Basel framework. Improve your basis for sound decision-making in loan granting and risk assessment. Add to your employees’ levels of competence and expand your talent pool.
Views: 2424 edX
Risk Management Bank
Views: 464 Dias Satria
Basel III - Credit Valuation Adjustment (CVA)
@ Members ~ Treasury Consulting LLP Pleased to present topic titled - " Basel III - Credit Valuation Adjustment (CVA) ". Video would be covering as how Valuation Adjustments are getting important for Corporates , Banks , Financial Institution , Hedge Funds covering all deals like Forwards Contracts , Options , Options Payoffs , Structured Finance , Clientele. Videos would be covering role of Value At Risk (VAR) for Banks while calculating Credit Valuation Adjustment. You are most welcome to connect with us at 91-9899242978 (Handheld) , [email protected] , [email protected] , Skype ~ Rahul5327 , Twitter @ Rahulmagan8. You are most welcome to visit our website - www.treasuryconsulting.in
CAIIB Video Lectures Basel II Part 2 CRAR by Vishal Mantri + 919960560404
The Basel accords are a series of recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision (BSBS). The name for the accords is derived from Basel, Switzerland, where the committee that maintains the accords meets. Basel II uses a "three pillars" concept – (1) minimum capital requirements (addressing risk), (2) supervisory review and (3) market discipline. The first pillar deals with maintenance of regulatory capital calculated for three major components of risk that a bank faces: credit risk, operational risk, and market risk. Other risks are not considered fully quantifiable at this stage. The credit risk component can be calculated in three different ways of varying degree of sophistication, namely standardized approach, Foundation IRB, Advanced IRB and General IB2 Restriction. IRB stands for "Internal Rating-Based Approach". For operational risk, there are three different approaches – basic indicator approach or BIA, standardized approach or TSA, and the internal measurement approach (an advanced form of which is the advanced measurement approach or AMA). For market risk the preferred approach is VaR (value at risk). The second pillar: Supervisory review It also provides a framework for dealing with systemic risk, pension risk, concentration risk, strategic risk, reputational risk, liquidity risk and legal risk, which the accord combines under the title of residual risk. Banks can review their risk management system. The Internal Capital Adequacy Assessment Process (ICAAP) is a result of Pillar 2 of Basel II accords. The third pillar: The Market Discipline Market discipline supplements regulation as sharing of information facilitates assessment of the bank by others, including investors, analysts, customers, other banks, and rating agencies, which leads to good corporate governance. The aim of Pillar 3 is to allow market discipline to operate by requiring institutions to disclose details on the scope of application, capital, risk exposures, risk assessment processes, and the capital adequacy of the institution. It must be consistent with how the senior management, including the board, assess and manage the risks of the institution.
Views: 1781 yuvaguru

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