$399.00

As part of the many factors of the Great Financial Crisis (GFC), the implement in the accounting methodology for expected-credit-loss (ECL) was a regulatory challenge to bank’s loan/loss provisioning levels. The International Financial Reporting Standard 9 (IFRS 9) is an attempt to take better consideration of risk events, and global inflationary pressures and build an operational accounting model taking into consideration required changes to the models.

$399.00

The news Basel III agreement led to many changes in the way banks manage their capital and their regulatory risk. The Basel Committee has introduced a standardized approach (SA) to calculate the minimum operation risk capital requirements. The implementation of the revised operational risk framework pushes banks to improve their internal processes with potential impacts on the bank’s data, business models and capital.

$499.00

Basel compliant banks (depending on the jurisdiction) where credit ratings from external credit assessment institutions (ECAIs) are allowed will be required to use the revised standardized approach (SA) to calculate their risk-weighted assets (RWAs). Under the Basel III agreement, banks will have to adopt SA for individual exposures, the external credit assessment (ECRA), and the standardized credit risk assessment approach (SRA). The RWAs will be permanently set at a minimum of 72,5% of those calculated under the revised SA.

$499.00

Compared to the earlier Basel I and Basel II regulatory frameworks, the Basel III agreement introduced additional capital leverage and liquidity standards to strengthen the regulation and the supervision of the banking sector such as:
* higher minimum Tier 1 Capital requirement
* capital conservation buffer
* countercyclical capital buffer
* higher minimum Tier 1 common Equity Requirement
* leverage ratio

$599.00

The Basel III agreement has introduced a new regulatory framework designed to mitigate risk within the international banking sector by requiring to maintain certain level of reserve capital. The 6% Tier 1 ratio must be composed of at least 4,5% of Common Equity Tier 1 (CET1). Once the Basel III agreement is fully implemented, banks will need a mandatory conservation buffer of at least 2,5% of the bank’s RWAs. In that case the bank’s CET1 will be of at least 7%.

$1,350.00

$4,750.00

$7,500.00

$199.00

Insurance regulations in Europe are currently dominated by the EU jurisdiction-based regulatory framework known as Solvency II. The regulation consists of three pillars:
* quantitative requirements
* supervisory review
* market disclosure and reporting
Under Solvency II, Insurance companies must comply with minimum capital requirements.

$199.00

Insurance companies have to choose between two different approaches:
* Standardized approach (SA)
* The Internal Model approach tailored to the specific company
The main goals are to reduce the risk for the insurer to fail and mitigate the risk that the policyholder incurs losses in the event of bankruptcy. It also sets new standards for better supervisory oversight to increase confidence in the insurance sector.

$299.00

Governance is vital for the Solvency II regulatory framework. The primary goal of the Solvency II system is to enforce effective risk management through a risk-based capital requirement that is driven by the top management.
As a result, under Solvency II, governance will be more transparent and the organizational structure will be clearly documented.

$399.00

Under Solvency II, insurance companies are required to hold enough capital to cover the “market-consistent” losses that could occur over the next year with a 99,5% confidence. As a result, insurance companies are mandated a Solvency capital requirement (SCR) and a minimum requirement (MCR).

$499.00

The standard formula for market risk is a set of liabilities versus assets, and the solvency capital requirement (SCR) is computed, such as the difference between the current market value and the stressed value of assets and liabilities. EIOPA annual insurance statistics show that market risk accounts for between 25% and 70% of the SCR basis.

$599.00

The counterparty default risk component of the Solvency II standard formula SCR covers three different sets of risk exposure:
* Receivables from intermediaries
* Risk-mitigating arrangements, contracts, and derivates or securities
* All kinds of credit exposures that aren’t covered in the market risk calculation

$1,100.00