Banking Supervision and Regulation Training Course

Participants can use core Basel standards to frame supervisory assessments and information requests.

• Basel Core Principles structure and assessment methodology
• Basel Framework pillars: minimum requirements, supervisory review, market discipline
• Capital, liquidity and large-exposure standards linked to supervisory evidence
• Proportionality applied to smaller, domestic and systemically important banks
• National rulemaking translated into supervisory manuals and reporting requirements
• Supervisory judgement documented where rules permit alternative interpretations

Participants can analyse a bank business model, balance sheet and earnings drivers for supervisory risk.

• Bank balance-sheet structure: assets, liabilities, equity and off-balance-sheet exposures
• Interest income, fee income and impairment charges analysed
• Business-model analysis identifies earnings concentration and strategic vulnerabilities
• Funding mix assessed across deposits, wholesale markets and central-bank facilities
• Related-party exposures traced through ownership and connected-counterparty information
• Peer comparison separates bank-specific weakness from sector-wide pressure

Participants can extract risk indicators and investigation priorities from regulatory returns.

• Prudential returns reconciled with audited financial statements and management accounts
• Trend analysis tracks capital, liquidity, profitability and asset-quality movement
• Early-warning indicators selected using thresholds, direction and persistence
• Data-quality checks test completeness, consistency, timeliness and plausibility
• Peer-group dashboards identify outliers requiring supervisory follow-up
• Information requests framed around evidence gaps and material risk hypotheses

Participants can prepare a documented CAMELS assessment and forward-looking bank risk profile.

• CAMELS components assessed using quantitative indicators and qualitative evidence
• Capital adequacy rating considers loss absorption and capital planning
• Asset quality rating tests arrears, restructurings, collateral and provisioning
• Management rating examines governance, controls, culture and risk reporting
• Earnings rating tests sustainability, concentration and sensitivity to shocks
• Liquidity and sensitivity ratings capture funding pressure and market exposures

Participants can assess whether board oversight and risk governance support safe bank operations.

• Board responsibilities tested against strategy, risk appetite and control oversight
• Three-lines model assessed for authority, independence and reporting quality
• Risk appetite statements linked to limits, escalation and management action
• Board packs reviewed for timeliness, challenge and decision evidence
• Senior-management fitness and propriety assessed through competence and conduct
• Remuneration arrangements examined for incentives that encourage excessive risk

Participants can assess credit underwriting, portfolio quality and impairment governance.

• Credit risk appetite translated into sector, borrower and product limits
• Underwriting files tested for affordability, collateral and approval authority
• Portfolio segmentation reveals concentrations by sector, geography and borrower
• Non-performing exposure metrics compared with cure and write-off patterns
• Forbearance practices reviewed for delayed loss recognition and repeat restructuring
• IFRS 9 staging and expected credit loss governance challenged
• Credit-file sampling designed around materiality, risk indicators and exceptions

Participants can evaluate capital adequacy, capital planning and ICAAP evidence.

• Regulatory capital components classified by quality, permanence and loss absorption
• Risk-weighted assets reviewed across credit, market and operational-risk exposures
• Capital ratios recalculated from reported exposures and eligible capital
• ICAAP assessed for material-risk coverage, governance and forward projections
• Capital planning tested against dividends, growth assumptions and stress losses
• Management buffers evaluated against risk profile and supervisory expectations

Participants can assess liquidity resilience, funding risk and contingency funding arrangements.

• Liquidity Coverage Ratio assessed through high-quality liquid assets and outflows
• Net Stable Funding Ratio examined against asset maturity and funding stability
• Cash-flow mismatches mapped across contractual and behavioural maturity buckets
• Funding concentration measured by depositor, counterparty, product and currency
• Contingency funding plans tested for triggers, options and operational readiness
• Collateral management reviewed for encumbrance, valuation and mobilisation capacity

Participants can identify material market and interest-rate risks within a bank risk profile.

• Trading-book positions assessed for valuation, limits and independent price verification
• Foreign-exchange exposures measured through open positions and stress scenarios
• Interest-rate risk in banking book analysed using repricing gaps
• Economic value and earnings sensitivity compared under prescribed rate shocks
• Basis risk, optionality and behavioural assumptions challenged
• Market-risk limit breaches reviewed for escalation and corrective action

Participants can assess operational resilience controls, technology risks and cyber incident readiness.

• Operational-risk taxonomy links people, process, systems and external events
• Loss-event data analysed for frequency, severity and control failure
• Key risk indicators tested against thresholds, ownership and escalation
• Business continuity plans reviewed for critical services and recovery objectives
• Cybersecurity governance assessed through access controls, monitoring and incident response
• Outsourcing arrangements examined for due diligence, contracts and exit plans

Participants can identify prudential implications of financial crime, conduct and customer-treatment failures.

• Anti-money-laundering governance assessed through risk assessment and reporting lines
• Customer due diligence tested for beneficial ownership and risk classification
• Transaction-monitoring scenarios reviewed for coverage, calibration and investigation quality
• Sanctions controls examined for screening, escalation and false-positive governance
• Conduct-risk indicators assessed through complaints, sales practices and redress
• Financial-crime failures connected to governance, capital and reputational risk

Participants can design a risk-based on-site examination plan with clear evidence requirements.

• Examination objectives derived from off-site risk profile and supervisory priorities
• Scope prioritised using materiality, inherent risk and control effectiveness
• Document request lists tailored to products, portfolios and governance concerns
• Sampling plans specify population, selection criteria and sample rationale
• Interview plans identify accountable executives, control owners and challenge questions
• Work programmes assign procedures, evidence standards and review points

Participants can gather, test and document evidence during supervisory examination work.

• Evidence hierarchy distinguishes assertions, documents, data and independent corroboration
• Walkthroughs trace controls from policy through transaction execution
• File testing records exceptions, root causes and population implications
• Management interviews use open questions, challenge and follow-up probes
• Working papers link observations to criteria, evidence and conclusions
• Confidential information handled through access controls and secure records

Participants can convert examination evidence into clear findings, ratings and risk conclusions.

• Finding statements distinguish condition, criterion, cause, consequence and recommendation
• Root-cause analysis separates isolated error from systemic control weakness
• Risk ratings combine impact, likelihood, persistence and management responsiveness
• Materiality judgements supported by exposure, customer harm and financial impact
• Issue aggregation identifies recurring themes across portfolios and control functions
• Quality assurance tests factual accuracy, evidence sufficiency and rating consistency

Participants can select proportionate corrective actions and prepare enforceable remediation requirements.

• Supervisory intervention ladder matched to severity, urgency and bank cooperation
• Remediation plans specify actions, accountable owners, milestones and evidence
• Capital add-ons and activity restrictions assessed against identified weaknesses
• Written directions and formal agreements drafted with measurable requirements
• Enforcement escalation considers legal authority, due process and public interest
• Remediation validation tests completion, effectiveness and residual risk

Participants can assess recovery options and understand supervisory coordination during bank distress.

• Recovery plans reviewed for triggers, options, governance and execution barriers
• Capital restoration options assessed for feasibility, timing and market confidence
• Liquidity recovery measures tested against collateral and funding availability
• Resolution strategies distinguish transfer, bail-in, sale and liquidation options
• Critical functions identified through payments, deposits, lending and market dependencies
• Inter-agency coordination mapped among supervisor, resolution authority and deposit insurer

Participants can incorporate system-wide vulnerabilities into institution-level supervisory priorities.

• Systemic risk channels traced through common exposures, contagion and interconnectedness
• Sectoral credit growth assessed against underwriting standards and property prices
• Stress-test scenarios incorporate macroeconomic, market and funding shocks
• Countercyclical capital buffer rationale linked to aggregate credit conditions
• Systemically important bank indicators reviewed for size, complexity and substitutability
• Macroprudential findings translated into bank-specific supervisory questions

Participants can communicate supervisory conclusions clearly to management, boards and decision committees.

• Exit meetings structured around material findings, ratings and required actions
• Board communications present evidence, implications and supervisory expectations
• Supervisory letters distinguish observations, recommendations and binding requirements
• Decision memoranda document options, rationale, legal basis and dissent
• Difficult conversations manage challenge, defensiveness and factual disagreement
• Escalation protocols define authority levels, deadlines and committee referral

Participants can maintain an auditable supervisory file that supports continuity and accountability.

• Supervisory files organised around risk profile, evidence, decisions and follow-up
• Information-management protocols classify confidential, restricted and public records
• Version control preserves approved findings, correspondence and management responses
• Issue trackers monitor actions, deadlines, evidence and overdue escalation
• Supervisory handovers preserve risk context, judgement and pending decisions
• File reviews test completeness, traceability and policy compliance

Participants can build, review and present a complete supervisory assessment, examination report and action plan for a bank.

• Bank risk profile assembled from financial, prudential and governance evidence
• CAMELS ratings justified using documented trends, exceptions and supervisory judgement
• Examination findings prioritised by materiality, root cause and urgency
• Capital and liquidity vulnerabilities tested against adverse scenario assumptions
• Supervisory action plan assigns requirements, owners, deadlines and verification evidence
• Management and board briefing presents conclusions, challenge and escalation decisions