Description

An overview of the banking regulatory objectives, historical evolution of the regulations, and current frameworks of major banking regulations. This includes the evolution of the Basel standards, as well as liquidity and leverage requirements, key US and EU regulations, and stress-testing tools to enhance financial stability.

Learning Objectives

  1. Identify the main objectives of bank regulations and the key tools used by regulators in the US, UK, and EU.
  2. Analyze the evolution of regulatory frameworks from Basel I to Basel III, including the introduction of liquidity ratios and capital buffers.
  3. Calculate simple regulatory capital ratios based on the guidelines of Basel I and understand their application in financial regulation.
  4. Compare the roles and impacts of key regulations such as the Dodd-Frank Act, MiFID, and EMIR on financial institutions across the US and Europe.
  5. Interpret the results and applications of stress-testing frameworks like the ECB stress test, CCAR, and DFAST in evaluating financial stability.