Basel 3.1 UK & EU Implementation

Introduction

This session offers a practical overview of Basel 3.1 and its evolving implementation across the UK and EU financial sectors. The session will cover recent regulatory updates, market developments, and the impact of Basel 3.1 on financial documentation and market practices.

What You Will Learn

This live and interactive course will cover the following:

• Summary of Basel 3.1, what is new and how it relates to existing regulations and requirements
• Identify, analyse, negotiate and amend primary elements of Basel 3.1 and how it hopes to enhance the resilience of banks and the broader financial system
• Explaining the minimum Tier 1 capital ratio visa vie total exposure
• Summary of UK PRA’s second instalment rules, in particular
• Review of the PRA’s key concerns and how they have or have not been addressed
• The SME support factor has not been explicitly reintroduced, but the PRA has committed to using Pillar 2a to counteract its withdrawal
• The output floors have been addressed for consistency, with an adjustment incorporating the impact of capital adjustments
• Conversion factors have been reduced for some off-balance sheet items
• Rules allow residential mortgage valuations to be updated
• Discussion on most likely impact on RWAs, IRB approaches and others
• One-year timeline for UK implementation
• Material chances to credit risk requirements for real estate exposures
• Substantial rule changes for SME and infrastructure lending will be balanced by pillar
• Summary of what it means to you
• Explore key negotiation and drafting strategies, responses, implications and successful approaches
• Impact of breach of any related covenants - what happens next?
• Impact of noncompliance on relevant financial institutions and credit ratings
• Review and working on major UK commercial credit ratings agencies
• Current and new anticipated related UK, EU, and US Regulatory News; discussion of their potential marketplace implications for now and in the medium to long term
• Future potential areas of regulatory and other development
• Practical tips for the proper administration and enforcement of such financial covenants
• Discussion on other impacts on credit, market and operational risks

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.