The new Basel II rules took effect last January 1, 2008. The aim of these rules is to set up a criterion that will serve as a guideline in enacting regulations that will protect banks against financial and operational risks and, at the same time, avoid the collapse of their business. Compliance with these rules will result in the segregation of the secutirized assets from calculation of risk weighted assets in case the credit risk connected to the assets are handed over to third parties. The transferring bank may still continue to service the assets but such bank and its creditors will not be able to get hold of these. Banks, especially the smaller ones are encouraged to take note of this since they are the first ones who will benefit from it.
The Knowledge Congress is assembling a panel of experts who will share their opinions in a two-hour teleconference and webinar. They will discuss the substantive provisions of these rules as well their impact on the banking business. A live interaction with the audience in a question and answer format is also included in this event.
Mark E. Van Der Weide
Assistant General Counsel
Teresa A. Scott
Counsel (Banking & Finance), Regulations and Legislation Division
Michael E. Bleier
Partner
Michael L. Stevens
SVP & Director of Regulatory Affairs
Jeffrey A. Brown
Managing Director
Mark E. Van Der Weide, Assistant General Counsel, Federal Reserve Board
&
Teresa A. Scott, Counsel (Banking & Finance), Regulations and Legislation Division, Office of Thrift Supervision
- How Basel II Standardized will improve competitive equity between small and regional banks VS large banks on Basel II Advanced
- Treatment of various exposures under Basel II Standardized, including sovereigns, corporates, banks, public sector entities, residential mortgages, regulatory retail, equities, and securitizations
- The pros and cons of the external ratings approach to regulatory capital enshrined in Basel II standardized
- The expanded credit risk mitigation benefits of collateral and guarantees under Basel II standardized
- The treatment of operational risk under Basel II Standardized
- New Disclosure requirements under Basel II Standardized
Michael E. Bleier, Partner, Reed Smith LLP
- Timeline Regarding Basel II Capital Rules
- History of Operational Risk in Basel II
- Application of Operational Risk Requirements under Standardized Approach and Under Advanced Approach
- Implications of Operational Risk Capital Charge for Banking Organizations
Michael L. Stevens, SVP & Director of Regulatory Affairs, Conference of State Bank Supervisors (CSBS)
- The standardized approach is critically important from some institutions. Institution profile. Impact from Basel II.
- How does the standardized approach address or not address problems in the current market?
- Reporting & Implementation issues.
- What will be the key points of interest to regulators?
- Top 5 items banks should address now.
Jeffrey A. Brown, Managing Director, Promontory Financial Group
- So far, the US bank regulatory agencies have only announced plans to issue a proposed rule offering a Standardized Approach.
- However, circumstances have changed since the formulation of those plans, and there is now likely to be less pressure to move forward on a US Standardized Approach.
- The primary motivation for offering a Standardized Approach in the US was concern that Basel II would confer an unfair competitive advantage on larger banks.
- That view is largely based on considerations of only Pillar 1 minimum capital requirement calculations and overlooks Pillar II determinations that will lead to assessments of actual capital adequacy-narrowing the advantage.
- That view also ignores the significantly increased examination scrutiny and higher expectations for governance and control systems for Advanced Banks-further narrowing the advantage.
- Finally, the upshot of the events of the last nine months is sure to be a significant shift in emphasis by US regulators toward overall capital adequacy for large banks to address things not addressed in Pillar 1-even further narrowing the advantage.
- As a corollary, given that environment, regulators and policy makers are not likely to look favorably on anything that might be perceived as leading to potential lower capital for smaller banks.
This teleconference will be of particular benefit to those involved in
- The implementing of Basel II and Bankers.
- Risk managers in financial institutions
- Rating agency analysts
- Financial controllers in large institutions
- Credit risk analysts
- Portfolio analysts / managers
- Treasurers
- Financial, Operational, Business Application and External Auditors
This is a must attend event for anyone interested in understanding BASEL II.
- New guidance explained by the most qualified key leaders & experts
- Hear directly from key regulators & thought leaders
- Interact directly with panel during Q&A