Comprehensive Basel Bank Capital Adequacy Certification Training (Basel III and IV)
Basel III certification, Basel IV training, capital adequacy course, RWA calculation training, banking risk management course, regulatory capital training, Basel framework course, financial risk certification, capital requirements banking, credit risk Basel, market risk Basel, operational risk Basel, risk weighted assets course, banking compliance training
Overview
The Comprehensive Basel Bank Capital Adequacy Certification Training (Basel III and IV) is a practical, hands-on program designed to build strong expertise in global regulatory capital frameworks issued by the Basel Committee on Banking Supervision (BCBS). Covering Basel II, Basel III, and the final Basel III reforms (Basel IV), the course provides essential knowledge of capital adequacy, leverage, liquidity, and risk management in modern banking.
The program develops core competencies in Risk-Weighted Assets (RWA), credit, market, operational, and liquidity risks, along with regulatory expectations and reporting practices. It combines real-world case studies with Excel-based exercises and risk simulation tools, enabling participants to confidently apply Basel concepts in capital assessment and regulatory reporting.
Key Areas Covered
- Comprehensive analysis of Basel II, Basel III, and final Basel III reforms, including key developments, supervisory expectations, and implementation guidance
- Detailed exploration of Credit Risk, Liquidity Risk, and Operational Risk, focusing on regulatory methodologies and capital calculations
- Practical exposure to Microsoft Excel and web-based risk engine simulators for calculating, analyzing, and interpreting regulatory risk measures
Course Curriculum
1.1 Evolution of Basel Standards
- Basel I → Basel II → Basel 2.5 → Basel III → Basel III Final (2017 reforms)
- Why “Basel IV” is industry terminology, not an official BCBS standard
- Post-crisis reforms and global implementation variations
1.2 Three Pillars Framework (still applicable under Basel III Final)
- Pillar 1 – Minimum Capital Requirements
- Pillar 2 – Supervisory Review
- Pillar 3 – Market Discipline
2.1 Composition of Regulatory Capital
- CET1, AT1, Tier 2
- Deductions and adjustments
2.2 Basel III Capital Ratios
- CET1 Ratio
- Tier 1 Ratio
- Total Capital Ratio
2.3 Capital Buffers
- Capital Conservation Buffer (CCB)
- Countercyclical Capital Buffer (CCyB)
- G-SIB and D-SIB Capital Surcharges
2.4 Macroprudential Reforms
- Systemic risk buffers (region-specific)
- Stress testing and P2R/P2G interaction
3.1 Liquidity Risk Concepts and 2008 Crisis Lessons
- Bank runs and liquidity spirals
- Role of short-term wholesale funding
- Interaction of leverage and liquidity risk
3.2 Regulatory Response
- Introduction of LCR and NSFR
- Intraday liquidity monitoring
- National discretions (EU/US/UK/SARB differences)
4.1 What is LCR?
- 30-day liquidity stress measure
4.2 High-Quality Liquid Assets (HQLA)
- Level 1, Level 2A, Level 2B
- Haircuts and operational requirements
4.3 Derivation and Calculation of LCR
- Cash outflows and inflows
- LCR = HQLA / Net Cash Outflows
4.4 Implementation Overview (2025)
- Global consistency and regional variations
5.1 Purpose and Objectives
- Structural long-term funding measure
5.2 Calculation Components
- Available Stable Funding (ASF)
- Required Stable Funding (RSF)
5.3 Global Implementation Status
6.1 Role in the Basel Framework
- Backstop to RWA-based capital requirements
- Preventing excessive leverage
6.2 Exposure Measure Components
- Balance sheet exposures
- Off-balance sheet items
- Derivatives and SFTs
6.3 Global Implementation
- G-SIB Supplementary Leverage Ratio (SLR)
- EU/UK/SARB variations
7.1 What Changed in 2017 Finalised Reforms
- Revised Standardised Approach (credit risk)
- Limits on internal models (IRB)
- Output Floor (72.5% of RWA)
- SMA for operational risk
- FRTB for market risk
- Leverage-ratio revisions
7.2 Implementation Timelines (2025 Status)
- EU: CRR III effective Jan 2025
- US: Basel III Endgame 2025–2028 phased
- UK: Basel 3.1 2025+
- SARB: phased adoption closely aligned with BCBS
8.1 Standardised Approach (Revised)
- Exposure class restructuring
- New risk-weighting methodology for:
- Corporates (ratings vs non-ratings based)
- Banks (“Categories” replacing mappings)
- Commercial real estate (income vs non-income based)
- Retail, SME, specialised lending
- Due-diligence requirements
- Credit Risk Mitigation (CRM) changes
- Collateral haircuts and eligibility rules
Exercises (Optional)
- STD RWA calculations
- Collateral + guarantee recognition
- Corporate borrower example
8.2 Internal Ratings-Based (IRB) Approach
- Removal of Advanced IRB for corporates, banks, financial institutions
- Floor minimums for PD, LGD, EAD
- Revised downturn LGD
- RWA variability reduction proposals
8.2.1 Foundation IRB (F-IRB)
- Components: PD (bank-estimated), LGD (prescribed), M, EAD
- Asset classes eligible for F-IRB as of 2025
- CRM under IRB
8.2.2 Advanced IRB (A-IRB)
- Still permitted for limited portfolios in certain jurisdictions
Exercises
- IRB PD/LGD calculations
- RWA comparison: STD vs IRB
- Impact of new parameter floors
9.1 What is Operational Risk?
9.2 SMA Components
- Business Indicator (BI)
- Business Indicator Component (BIC)
- Internal Loss Multiplier (ILM)
- Loss component
9.3 Regulatory Capital Calculation
- SMA formula
- Loss data requirements
- Impact on banks previously on AMA
Exercises
- SMA calculation on sample dataset
10.1 Purpose
- Limit IRB banks’ total RWA reduction
10.2 Calculation
- Total RWA ≥ 72.5% of Standardised Approach RWA
10.3 Transition Arrangements (2025 Status)
- EU multi-year phase-in
- US/UK similar but jurisdiction-specific
11.1 Trading Book vs Banking Book Boundary
11.2 Standardised Approach (SA)
- Sensitivities-Based Method (Delta, Vega, Curvature)
- Default Risk Charge (DRC)
- Residual Risk Add-On (RRAO)
11.3 Internal Models Approach (IMA)
- Expected Shortfall (ES)
- Non-Modellable Risk Factors (NMRF)
- P and L Attribution (PLA) tests
11.4 Regional Implementation
- EU: reporting only until full capitalisation
- US/UK: staged implementation
- Emerging markets: varying timelines
Exercises
- SBM calculation examples
- DRC simple example
12.1 CIU treatment under CRR (not FRTB)
- Look-through, mandate-based, fall-back approaches
- Article 323a–c (CRR III)
Note
- Legacy rules still applicable in some EU reporting templates
- RWA treatment under revised STD and IRB
- Updated off-balance sheet conversion factors
- CRM treatment for trade products
- Supply-chain finance considerations
15.1 South Africa (SARB)
- Local adoption of Basel III reforms
- Domestic systemic buffers
- Liquidity requirements
- Model approval processes
15.2 U.S. – Basel III Endgame
- Standardised vs Expanded Risk-Based Approaches
- Revised credit, market, operational risk rules
- Implementation 2025–2028
15.3 EU – CRR III / CRD VI
- In force January 2025
- Output floor transition
- Restrictions on IRB
15.4 UK – Basel 3.1
- Implementation 2025 onwards
- UK-specific calibrations
15.5 Other Emerging Market Jurisdictions
- Phased adoption strategies
- National discretions
Prerequisites
- BAU/Operations team
- Regulatory Reporting Team
- Policy Team
- Audit and Compliance
- Finance team
- Credit Management Team
Who is this course for?
Anyone interested in learning more about the rules governing bank capital and liquidity should take the course. It is aimed at all level learners and presupposes a basic understanding of accounting, financial instruments, and banking operations.
It might be appropriate for:
Who Should Attend
- This course is ideal for anyone seeking a comprehensive understanding of the rules governing bank capital and liquidity. It is designed for intermediate-level learners and assumes a foundational knowledge of accounting, financial instruments, and banking operations.
- The course is particularly suitable for professionals such as analysts, bankers, risk managers, regulators, internal auditors, and investors. It provides them with the necessary insights to navigate the complexities of bank capital adequacy and liquidity requirements effectively, supporting their career progression in the finance industry.
The Exam
- 40 questions
- A Passing Score: 70% (28 out of 40 questions)
- Objective-type questions related to the training syllabus
- Completion certificate by GraspSkill
Benefits
- Gain a strong understanding of Basel II, Basel III, and Basel IV regulatory frameworks
- Develop practical skills in capital adequacy, RWA calculation, and risk management
- Learn to manage credit, market, operational, and liquidity risks effectively
- Enhance ability to support regulatory reporting and compliance requirements
- Build hands-on experience using Excel and risk simulation tools
- Improve analytical and decision-making skills in banking and finance
- Increase career opportunities in risk management, compliance, and regulatory roles
- Strengthen your professional credibility with a globally relevant certification
- Stay updated with evolving banking regulations and supervisory expectations
- Position yourself as a valuable contributor to financial stability and risk governance
About Trainer
- He is a seasoned banking risk and regulatory expert with extensive experience in capital adequacy frameworks and Basel regulatory standards. With a strong background advising financial institutions on risk‑based capital measurement, stress testing and regulatory compliance, he brings practical insights into aligning capital strategies with global requirements. Known for his engaging and clear teaching approach, he simplifies complex regulatory concepts and equips learners with actionable skills. His guidance helps professionals confidently apply Basel principles to strengthen capital planning and risk management practices.
Learning Outcomes
This training is designed to:
- Explain capital adequacy under Basel III and the finalised Basel III reforms (commonly referred to as “Basel IV”), with a focus on enhancements to the quality of capital, risk-weighted asset (RWA) calculations, capital buffers, leverage ratio and risk management frameworks.
- Highlight key regulatory and supervisory roles by examining the responsibilities of the Basel Committee on Banking Supervision (BCBS), regional regulators such as the EBA and PRA and national competent authorities in the global implementation of Basel standards.
- Provide a deep dive into key risk areas, including Credit Risk, Liquidity Risk, Operational Risk and Market Risk, covering methodologies such as SA-CCR for counterparty credit risk, PD concepts within the IRB framework and practical RWA calculations.
- Summarize the key enhancements introduced under the final Basel III reforms, including revised RWA methodologies, IRB parameter constraints and floors, the standardized approach for operational risk, strengthened liquidity metrics (LCR and NSFR) and the Basel output floor.
- Enable practical application of Basel concepts through real-world examples, hands-on calculations and applied case studies.
Student Reviews
"“A well-structured course that significantly enhanced my understanding of Basel frameworks. The content was clear and highly relevant to real-world applications.”"
"“This course provided a clear and practical understanding of Basel III and IV frameworks. The RWA calculations and case studies were especially useful.”"
"“Well-structured training with strong focus on real-world applications. It helped me better understand Basel requirements and capital planning.”"
"“This certification enhanced my understanding of capital adequacy and risk management. Very relevant for professionals in banking and finance.”"
Frequently Asked Questions
Group discounts are available to groups of more than three candidates. You can get up to 20% discount depending on the number of participants.
Yes, if you notify at least 24 hours in advance before the 1st class of the training and there is an availability in a different batch then you will be able to switch your start date.
Our courses are designed to provide high quality learning and outcomes that exceed expectations. If for some reason your expectations are not met. You will be given a refund in accordance with our 100% satisfaction policy.
Yes, there will be an assessment of 40 questions based on the training topics at the end of the course, you will have to score 75% to pass.
You will get 2 attempts.
Sure, you can watch the recordings of the sessions you cannot attend and join the next session with doubts.
All the participants will be added to WhatsApp group. You can clarify doubts at any time via WhatsApp or email.
Yes, you will be able to pay the course fees in instalments. Reach out to [email protected] to see the options available to you.
No difference in the content. In self paced course, you will have eLearning course access with pre-recorded lectures, training materials, exercises, RWA calculator and certification assessment. And, with live training option, you will join Zoom meeting and attend interactive training session.
You will receive meeting login for Zoom live classes and training materials.
You will get access to the learning portal and certification exam voucher via email.
This course provides comprehensive training on Basel II, Basel III and Basel III Final (“Basel IV”) frameworks, including risk-based capital requirements, liquidity standards, leverage ratios, credit, market, operational risk and implementation challenges. Certification is awarded after successfully passing our in-house assessment.
a) Covers Basel II, Basel III, and Basel III Final (“Basel IV”) in one program. b) Focuses on practical application, case studies and real-world banking scenarios.
Yes, participants will complete hands-on exercises and case studies including: a) Credit risk capital calculations. b) Market risk measurement and stress testing. c) Liquidity coverage and net stable funding ratio applications. d) Operational risk modelling. e) Basel IV output floor and standardized approach examples.
Yes, the course is aligned with latest Basel guidance and regulatory updates relevant to global banks.
Basic knowledge of banking, finance or risk management is helpful, but the course is designed to guide beginners to advanced practitioners step by step.
No, our in-house certification is valid indefinitely, demonstrating your Basel expertise. While not mandatory, refresher training every 2-3 years is recommended to maintain skills and compliance.
It tests practical understanding and application of Basel concepts. With full participation, most participants pass on the first attempt.
We offer live online live sessions, self-paced learning and in-person workshops, ensuring flexibility for busy professionals.
Our trainers are experienced banking risk managers, compliance officers and finance professionals with hands-on Basel implementation experience.
Yes, participants receive comprehensive slides, exercises, calculators and reference notes covering Basel II, Basel III and Basel IV.
Yes, we offer mentorship, doubt resolution and guidance for assessment preparation.
a) Gain hands-on knowledge of Basel risk frameworks. b) Understand regulatory compliance and capital adequacy requirements. c) Apply learnings to internal reporting, risk management, and strategic planning. d) Enhance career opportunities in banking, consulting and risk management.
Yes, exercises reflect practical issues faced by banks globally, including capital calculation, liquidity stress tests and Basel IV implementation challenges.
Absolutely. Our course focuses on practical, implementable solutions for Basel II, Basel III, and Basel IV compliance, including internal models, standardised approaches and reporting requirements.
Yes. The online training is accessible worldwide.
Self Paced Learning
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Upcoming Schedules
| Date | Time | Duration | Mode | Price | Action |
|---|---|---|---|---|---|
| 14:00 - 18:00 Kolkata (UTC+5:30) | 20 Hours. 04 hours/ Day. Total 5 days (May 18, 19, 20, 21 and 22, 2026) | Live Online | $899.00 $799.00 |
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