The Basel Committee on Banking Supervision has now released a raft of new guidance

known as ‘Basel III’ — but what is it? How is it being locally interpreted by APRA?

There’s no question its ramifications are tremendous — banks will undergo real structural change in their banking

books and traded activities. Products will change in the former and some markets may disappear altogether in the

latter.

ABouT THIS CouRSe

Presented by one of AFMA’s most popular presenters, this practical, one-day new course will analyse the implications of

Basel III and work with you to understand its likely impact on your firm — whether domestically or overseas.

Compare how your firm is approaching this important reform with your peers, discuss your concerns and ask questions to

build your understanding.

WHAT you’ll leARn

» Identify the core objectives of Basel III reform and what it plans to improve

» Discuss the key initiatives contained in Basel III

» Describe its high-level impacts on your firm, its risk management practices and that of your counterparties

» Consider the likely changes in your market and work practices

lengTH

9.00am – 5.00pm

Understanding the implications of Basel III for Australian financial markets

www.afma.com.au

evolution of the Basel Accord due to 2007-9 banking crisis

» What bought it on – failure of Basel II?

» Review of Basel I and Basel II

» Basel II and the banking crisis

» Problems with Basel II

» In defense of Basel II

» 3 pillars of Basel III

» Basel III rules

» APRA interpretations – phasing periods

» Phase-in period

What is meant by principles-based supervision?

» ICAAP under Basel III

Changes in the composition of capital

» Increase quality of capital

» Changes in Tier 1 and Tier 2

» APRA requirements

Challenges to capital management

» Increase quantity of capital

» Potential reduction of pro-cyclicality

» Counter cyclical capital buffer

» Introduction of the leverage ratio (domestic)

Risk weighting of assets

» Sovereign risk

» Impact on risk management

Market risk

» Revisiting traded market risk – calculation of sensitivities

» OTC derivatives changes

» Revisiting non-traded (interest rate) market risk

» Re-securitisation exposure

Revisiting funding liquidity risk

» High quality liquid assets/minimum liquid holdings

» Maturity profiles:

» Short-term liquidity cover ratio (LCR)

» Longer-term net stable funding ratio (NSFR)

Revisiting credit risk

» New rules for assessing counterparty credit risk

» External credit ratings

» Centralised counterparties

Revisiting operational risk

» What is missing?

g-20 – Systemically Important Financial Institutions

» Why and what does it mean?

Implications for risk management

Basel III – will it work?

ABOuT yOuR FACILITATOR

Susan Campbell, Consultant, Argyll Financial & Treasury

Consultants

Susan Campbell has worked for many years in the finance industry

with major banks in Melbourne and London as a treasury advisor to

Australian and international firms. Susan subsequently became the

Treasurer for Sussan Corporation, a large Australian property and

retail group.

For the last 20 years, Susan has run a successful consulting

business, ARGyLL, specialising in treasury operations, transactional

banking, risk management and internal controls. Susan also consults

on finance and treasury policy to various professional bodies in

Australia. Susan is also a non-executive director of Heritage Bank

and head of its Risk Committee. Heritage is Australia’s largest

member-owned bank, giving Susan direct experience and insight

into the role of good risk management in surviving major financial

stresses.

COuRSE OuTLINE

www.afma.com.au

CONTINuING EDuCATION

6.5 CE hours

Understanding the implications of Basel III for Australian financial markets

All enquiries and applications should

be directed to:

Tel: (61 2) 9776 7914

Fax: (61 2) 9776 4488

email: education@afma.com.au

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enrolment and are payable within 14 days of being issued.

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Understanding the implications of Basel III for Australian financial markets