Basel II & Basel III

Basel II & Basel III Frameworks – Learning Roadmap

The principal message of the Basel II framework is Capital Adequacy. Basel II signaled a move away from a purely static regulator driven capital adequacy measure to an internal and relatively invasive assessment of the capital profile of a bank, called the Internal Capital Adequacy Assessment Process (ICAAP).

Under ICAAP requirements a bank needs to have in place internal procedures and processes to ensure that it possesses adequate capital resources in the long term to cover all of its material risks and the board is kept cognizant of any expected or projected capital shortfall.

Basel III introduces significant reforms to the Basel II networks primarily by setting out the supervisory framework for liquidity risk measurement via two minimum funding liquidity standards.


What are the prerequisites?

History behind the current capital adequacy requirement framework

To understand the current capital adequacy requirement framework we begin with an overview of the historical back ground behind the development of Basel II:


What topics are covered?

Basel II and ICAAP

The following courses then address Pillar 2 of the Basel II framework- the Internal Capital Adequacy Assessment Process (ICAAP):


Basel III

Basel III is due to be fully implemented by 2019 and represents reforms to and strengthening of the existing capital requirement and liquidity standards. The following courses in turn review the revisions to the Basel II framework that Basel III encompasses as well as a detailed review of the liquidity reforms.


What are the additional topics I can read up on?

Other courses related to Basel II, ICAAP and Basel III are:

Related Video Courses


Related PDF Files


Related EXCEL Files