What the New Basel Framework for Risk-Based Capital & Liquidity Means for My Banking Institution

The US federal banking regulators, Canada’s Office of the Superintendent of Financial Institutions (OSFI) and other financial regulatory agencies are implementing the updated “Basel Framework” risk-based capital and liquidity management international standard for banks and other depository institutions under their jurisdiction.  Also called “Basel IV,” the new Basel Framework will have a profound impact on depository institutions’ capital requirements for mortgage lending, operational risk, market risk, and liquidity risk.  This session will also cover potential exemptions from these rules for community banks and credit unions including the US’s “Community Bank Leverage Ratio” that gives qualifying community banking institutions the option to adopt a higher minimum leverage ratio requirement in lieu of the Basel Framework.

In this session you will learn:

• What are the updated Basel Framework’s key differences from Basel I, Basel II and the original version of Basel III.
• How and when the updated Basel Framework is being implemented by the US federal banking regulators, OSFI and other financial regulatory agencies such as the UK’s Bank of England-Prudential Regulation Authority, the Australian Prudential Regulation Authority, and the US’s National Credit Union Administration.
• What are your institution’s strategic options for compliance with these new regulations, including whether it makes better sense for your bank to adopt the Community Bank Leverage Ratio instead.

• Risk-Based Capital
• Liquidity
• Credit Risk
• Operational Risk
• Market Risk

This session will provide a non-technical overview of Basel Framework-based regulations intended for bank and credit union executives, board members, compliance officers and risk-management professionals in the United States, Canada and other jurisdictions who want to understand the strategic implications of these new capital and liquidity rules for their institutions. 

• Board Member 
• Chief Executive Officer (CEO)
• Chief Financial Officer (CFO) 
• Chief Compliance Officer (CCO)
• Chief Risk Officer (CRO)
• Chief Operations Officer (COO)
• Compliance Officer 
• Risk Manager
• Treasurer
• General Counsel
• Economist

Michael Edwards is an attorney-at-law with extensive experience representing banking institutions and credit unions on a wide range of regulatory matters. He has served as Senior Vice President for Advocacy and General Counsel for the World Council of Credit Unions, an international trade association for credit unions and cooperative banks where he advocated before international and national-level banking regulatory agencies including the Basel Committee on Banking Supervision. He has also served as Senior Assistant General Counsel in the Regulatory Advocacy section of the Credit Union National Association, the largest trade association for credit unions in the United States. Michael has been published on banking and credit union regulatory matters by the Administrative Law Review, Enterprise Magazine, CU Management, and other publications. He holds a J. D. from the American University-Washington College of Law, an M.A. in International Affairs from the American University-School of International Service, and a B.A. in English from the University of Pennsylvania.