Course Overview

This program equips financial regulators, supervisors, and policymakers with the knowledge and tools to implement effective banking supervision in line with the Basel Core Principles (BCPs) and the Basel I, II, and III regulatory frameworks. It focuses on prudential regulation, supervisory processes, risk‑based supervision, capital adequacy, liquidity standards, and macro‑prudential oversight.

Participants learn how to strengthen financial stability, enhance supervisory capacity, and align national regulatory systems with global standards.

2. Learning Objectives

Participants will be able to:

• Understand the Basel Committee’s regulatory and supervisory frameworks.

• Apply the Basel Core Principles (BCPs) for effective banking supervision.

• Assess capital adequacy under Basel II/III (Pillars 1, 2, and 3).

• Implement risk‑based supervision and supervisory review processes.

• Evaluate liquidity risk using LCR and NSFR standards.

• Understand macro‑prudential tools and systemic risk oversight.

• Strengthen supervisory governance, reporting, and enforcement.

• Prepare supervisory assessments aligned with World Bank and IMF FSAP missions.

3. Target Audience

• Central bank supervisors and regulators

• Financial Services Regulatory Authorities

• Ministry of Finance financial sector teams

• Risk managers and compliance officers

• World Bank–funded financial sector reform teams

• Banking sector analysts and consultants

• Academics and researchers in financial regulation

4. Detailed Course Outline

Module 1: Introduction to the Basel Framework

• Evolution of Basel I, II, and III

• Objectives of global banking regulation

• Role of the Basel Committee on Banking Supervision (BCBS)

• World Bank and IMF perspectives on financial sector stability

• Case studies of banking crises and regulatory failures

Module 2: Basel Core Principles (BCPs) for Effective Banking Supervision

• Overview of the 29 Basel Core Principles

• Supervisory powers, responsibilities, and independence

• Licensing, ownership, and corporate governance standards

• Supervisory techniques and enforcement tools

• BCP assessments in World Bank/IMF FSAP missions

Module 3: Capital Adequacy under Basel II & III (Pillar 1)

• Minimum capital requirements

• Credit risk approaches (Standardized, IRB)

• Market risk and operational risk frameworks

• Capital buffers: CCB, CCyB, and systemic buffers

• Leverage ratio requirements

Module 4: Supervisory Review Process (Pillar 2)

• Internal Capital Adequacy Assessment Process (ICAAP)

• Supervisory Review and Evaluation Process (SREP)

• Assessing banks’ risk management frameworks

• Stress testing and scenario analysis

• Supervisory interventions and corrective actions

Module 5: Market Discipline & Disclosure (Pillar 3)

• Transparency and disclosure requirements

• Public reporting of capital, risk exposures, and governance

• Enhancing market discipline through information disclosure

• Role of auditors and external reviewers

Module 6: Liquidity Risk & Basel III Liquidity Standards

• Liquidity Coverage Ratio (LCR)

• Net Stable Funding Ratio (NSFR)

• Liquidity risk monitoring tools

• Supervisory assessment of liquidity management

• Crisis liquidity management and central bank facilities

Module 7: Risk‑Based Supervision

• Principles of risk‑based supervision (RBS)

• Risk identification, scoring, and prioritization

• On‑site and off‑site supervisory tools

• Early warning indicators and supervisory dashboards

• Supervisory planning and resource allocation

Module 8: Macro‑Prudential Supervision & Systemic Risk

• Systemic risk indicators and monitoring

• Macro‑prudential tools (LTV, DTI, CCyB, sectoral capital requirements)

• Interconnectedness and contagion analysis

• Supervising systemically important banks (D‑SIBs, G‑SIBs)

• Financial stability frameworks in developing countries

Module 9: Supervisory Governance, Reporting & Enforcement

• Supervisory governance structures

• Reporting requirements for banks

• Enforcement actions and sanctions

• Crisis management and resolution frameworks

• Coordination with deposit insurance and financial stability units

Module 10: Practical Exercises & Capstone Project

• Conducting a Basel Core Principles (BCP) self‑assessment

• Evaluating a bank’s capital adequacy under Basel III

• Designing a supervisory review plan (SREP)

• Conducting a liquidity risk assessment using LCR/NSFR

• Capstone: Develop a supervisory improvement plan for a simulated banking system

5. Training Methodology

• Expert‑led lectures and guided discussions

• Hands‑on supervisory assessment exercises

• Case studies from World Bank and IMF FSAP missions

• Group work and scenario‑based simulations

• Practical sessions on capital, liquidity, and risk‑based supervision

• Capstone project with peer and instructor feedback

6. Deliverables & Outputs

Participants will receive:

• A Basel Supervision Toolkit (frameworks, templates, checklists)

• BCP assessment templates and supervisory review tools

• Capital and liquidity assessment models

• Capstone project report and presentation

• Certificate of Completion from Regewall Training Institute