BASEL III Implementation and Reporting Consulting
The biggest long-term impacts of Basel III on most institutions are those new provisions governing the management and measurement of liquidity risk-with hindsight, sadly lacking in Basel II.
New standards applicable to capital quality and ratios, capital buffers, the capital treatment of counterparty credit risk and securitisation exposures, leverage ratios and large exposure rules are now a hard reality in many jurisdictions.
All institutions of systemic importance – and in some jurisdictions all institutions, irrespective of systemic importance – need to deploy reverse stress-testing and Recovery and Resolution planning.
Even allowing for the regulatory principle of ‘proportionality’, adoption of disciplines such as pricing liquidity risk, liquidity contingency planning and liquidity buffer management will challenge many smaller banks.
BIZENIUS has a strong pedigree in supporting client institutions in this area in terms of both qualitative and quantitative liquidity regulations.
BIZENIUS Risk Solutions works with banks to provide BASEL consulting services and solutions.
- Diagnostic assessment of impact of Basel III on a bank’s capital and liquidity strategy
- Advisory to banks on credit and investment portfolio optimisation by combining analytics of their existing portfolio trends, future business plans, insights from our research on a variety of sectors, and transitional arrangements for capital
- Design framework for risk-based pricing and decision-making
- Design liquidity management strategy
- Design risk measurement models for credit risk and market risk management
- Design expected loss-based provisioning framework in accordance with IFRS guidelines