Training course on Implementation of Basel Accords (Basel III and IV) by Central Banks

Module 1: Introduction to Basel Accords

Evolution from Basel I to Basel IV

Lessons from the global financial crisis

Objectives of Basel reforms: resilience, transparency, and stability

Module 2: Capital Adequacy under Basel III/IV

Minimum capital requirements and buffers (CET1, Tier 1, total capital)

Capital conservation and countercyclical buffers

Basel IV revisions to credit risk, market risk, and operational risk frameworks

Module 3: Leverage Ratio Framework

Purpose of leverage ratio as a backstop to risk-based capital

Calculation methodologies

Implications for bank balance sheet management

Module 4: Liquidity Standards

Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR)

Monitoring tools for liquidity risk management

Supervisory challenges in enforcing liquidity standards

Module 5: Risk-Weighted Assets and Standardized Approaches

Basel IV reforms to credit risk weighting

Standardized vs. Internal Ratings-Based (IRB) approaches

Treatment of specialized lending and securitization

Module 6: Market and Operational Risk Frameworks

Fundamental Review of the Trading Book (FRTB)

Revised standardized measurement approach (SMA) for operational risk

Supervisory review of banks’ risk management systems

Module 7: Pillar 2 – Supervisory Review Process

Principles of risk-based supervision

Stress testing methodologies and supervisory judgment

Recovery and resolution planning under Basel guidelines

Module 8: Pillar 3 – Market Discipline and Disclosure

Transparency requirements for banks

Disclosure templates and reporting standards

Role of central banks in ensuring effective market discipline

Module 9: Basel Implementation Challenges

Adapting Basel standards to local financial structures

Capacity constraints in emerging and developing economies

Balancing regulation with financial inclusion and credit growth

Module 10: Cross-Border Supervision and Cooperation

Supervisory colleges and information-sharing

Home-host supervisory relationships

Managing risks in internationally active banks

Module 11: Case Studies and Global Experiences

EU’s CRD/CRR framework

U. S. implementation of Basel standards

Basel adoption strategies in emerging markets

Module 12: Practical Workshop and Capstone Project

Hands-on calculation of capital adequacy and liquidity ratios

Simulated supervisory review of a bank under Basel III/IV standards

Drafting an implementation roadmap for a central bank