Basel III Fundamentals Training in Madrid, Spain

This beginner-level Basel III program provides participants with a foundational understanding of modern banking regulations, focusing on capital adequacy, risk management, and liquidity requirements. The course introduces the evolution from Basel I and Basel II to Basel III, and covers essential components such as capital structure, RWA calculations, LCR, NSFR, and basic stress testing.

Through simplified examples and Excel-based hands-on exercises, participants gain practical exposure to how global banks assess capital, manage risks, and comply with regulatory expectations. This program is designed for individuals with limited or no prior knowledge of Basel norms.

Basel Foundations & Capital Requirements

Module 1: Introduction to Banking Risk & Basel Framework

• What is banking risk?
• Why global banking regulations exist
• Overview of Basel Committee
• Basel I → Basel II → Basel III (simple evolution)

Hands-On Exercise

Module 2: Basel III Capital Structure

• Types of capital: CET1, AT1, Tier 2
• Quality of capital
• Role of capital in risk management

Hands-On Exercise

Module 3: Minimum Capital Requirements

• Overview of 8% capital requirement
• Capital Conservation Buffer
• Countercyclical Buffer (basic concept)
• Leverage Ratio (simple explanation)

Hands-On Exercise

Credit Risk & RWA Basics

Module 4: Understanding Credit Risk Basics

• What is credit risk?
• Types of exposures (loans, credit lines, collateralized exposures)
• Concept of default
• What are PD, LGD, EAD (explained in non-technical way)

Module 5: RWA (Risk-Weighted Assets) – Standardised Approach

• Concept of risk weights
• Asset classes under Basel III
• How banks calculate RWA using regulatory tables
• Simple exposure classes:
• Sovereigns
• Corporate
• Retail
• Mortgages

Hands-On Exercise

Module 6: Introduction to Credit Risk Mitigation (CRM)

• Collateral basics
• Guarantees (simple examples)
• Netting and risk mitigation (high level)

Hands-On Exercise

Liquidity Basics, Stress Testing & Basel Implementation

Module 7: Liquidity Risk Basics

• Why liquidity risk matters
• HQLA (High-Quality Liquid Assets) explained at beginner level
• Overview of LCR (simple formula)
• Overview of NSFR (concept only)

Hands-On Exercise

Module 8: Introduction to Stress Testing (Beginner Level)

• What is stress testing?
• Why regulators require it
• Simple examples of capital & liquidity shocks
• Difference between scenario analysis & sensitivity analysis

Hands-On Exercise

Module 9: Basel III Reporting & Implementation Basics

• What is regulatory reporting?
• High-level overview of:
• Pillar 1
• Pillar 2
• Pillar 3
• How banks implement Basel III in real life
• Simple case study from an international bank

Hands-On Activity

Query Discussion

ProgNXT Evaluation

ProgNXT Certification