This training session looks at the Basel III regulations’ impact on the banking industry and their hedge fund clients. The training provides a review of the regulations, their implications for banks and hedge funds and steps hedge funds can take to mitigate the effect of these regulations. The course is organized as follows:
SECTION 1: REGULATORY OVERVIEW
Origins of Regulations
- Basel III
- Dodd Frank
- Central Banks
Overview of Key Regulations:
- Core Equity Tier One Capital Ratio (CET1)
- Comprehensive Capital Analysis and Review (CCAR)
- Supplementary Leverage Ratio (SLR)
- Liquidity Coverage Ratio (LCR)
- Net Stable Funding Ratio (NSFR)
- Orderly Liquidation Authority (OLA)
- Total Loss Absorbing Capital (TLAC)
SECTION 2: IMPLICATIONS FOR THE FINANCIAL SERVICES INDUSTRY
- Major Banks and Prime Brokers
- Hedge Funds
- Unintended Consequences of Basel III
SECTION 3: ACTION STEPS FOR HEDGE FUNDS
- ROA: Pro-active Engagement with Prime Brokers
- Evaluating Your Prime Broker Portfolio
- Counterparty Risk Management: Incorporating Basel III Metrics