What You’ll Learn

• Understand how banking regulation and supervision impact capital management.
• Integrate capital planning into budgeting and risk-adjusted KPIs.
• Calculate and apply cost of capital across business lines.
• Optimize capital deployment and portfolio efficiency.
• Navigate governance frameworks.
• Compare banking market structures and their evolution globally.

Week 1 – Introduction and Banking Regulatory

Framework

Introduction   

• Concept
• Scope
• Bank profitability

Banking Regulatory Framework

• Goal of regulation and difference vs supervision
• Role of capital and definition
• Subordinates
• RWA – Credit
• RWA – Market (short)
• RWA – Operational (short)
• Regulatory ratios: capital, leverage and liquidity
• Stress Test
• TLAC/MREL

Practical Examples

• calculating RWA different customers

Case Studies

• Subprime crisis: how it was generated and propagated
• Impacts of Accounting standards on Banks (IFRS 9 and 16)

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Week 2 – Banking Supervision & Capital Management Framework

Starts with Q&A session from week 1

SREP   

• SREP targets
• Framework
• On – site inspections

Capital Management – Part 1: Planning

• Framework Goal, boundary conditions
• Budget Process
• Phases
• Capital and funding plan
• Economic scenario
• Risk Adjusted Profitability KPIs
• Cost of Capital
• Links and impacts with other processes

Practical Examples:

• How to calculate cost of capital
• How to calculate risk adjusted profitability

Case Study:

• How to successfully manage SREP

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Week 3 – Capital Management Framework – Part 2: portfolio management

 ICAAP- ILAAP – Risk Appetite

• ICAAP/ILAAP : definition, structure and regulatory requirements,
• Interactions of ICAAP/ILAAP with the other bank’s processed
• Interplay of SREP and ICAAP/ILAAP
• The root of ICAAP/ILAAP: the Risk Appetite Framework

Capital Management Framework – Part 2: portfolio management

• Portfolio management: overall framework
• Managing current customer stock
• Pricing: a framework based on risk-adjusted return
• Securitization to boost capital return

Discussion Prompt:

Discussion Prompt: What strategies can banks use to optimize capital efficiency while maintaining profitability?

Case Studies

• How to successfully manage SREP
• Evolution of securitization markets

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Week 4 – Governance & Basel IV innovation & Banks’ evolution

Starts with Q&A session from week 3

Basel IV: regulatory framework and bank reaction

• Main innovations

Governance

• Corporate bodies and committees
• Bank functions
• Monitoring & reporting

Broadening the perspective

• Evolution of banking and other actors

Case Studies:

• Base IV How banks are adapting their business model and practices
• US vs Europe Banking Models
• US vs Chinese Banking Models