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Description

Basel III Prudential Ratios: Understanding, Calculating and Measuring the Impact

Read prudential requirements and understand what the revised calculations change for your institution

  • 1 day — 7 h
  • In-person or virtual
  • Foundation
  • Up to 6 participants

Prudential ratios are produced by specialist teams but commented on by many others. Staff in lending, treasury and control functions face constraints on capital consumption or liquidity without understanding where they come from or which parameter moves them. Discussions with regulatory reporting teams suffer as a result.

This one-day programme lays the foundations. It explains how regulatory capital is built, the logic behind risk-weighted exposure calculations and how the liquidity ratios work, then shows what the final Basel III reforms change in the measurement approaches. No prior knowledge of the prudential framework is required.

Learning objectives

  • Situate the banking prudential framework and its main implementing texts
  • Break down regulatory capital and its different tiers
  • Explain how risk-weighted exposures are built by risk type
  • Read a solvency ratio and identify the parameters that make it vary
  • Distinguish the short-term liquidity ratio from the stable funding ratio
  • Identify the effects of the revised framework on measurement methods

What makes this programme different

Ratios are recalculated step by step on a simplified bank balance sheet
Prudential terminology is translated into operational language throughout the day
The effects of the standardised and internal approaches are compared on the same portfolio

Programme

1Regulatory capital and prudential architecture

Understanding what the regulation protects

  • Purpose of capital requirements and the role of supervisory authorities
  • Composition of common equity, additional tier 1 and tier 2 capital
  • Deductions and filters applied to the numerator
  • Minimum requirements, buffers and supervisory expectations
  • Interaction between the regulatory pillar and the supervisory review process

2Risk measurement and risk-weighted exposures

From the balance sheet to the denominator of the ratio

  • Credit risk under the standardised approach and the internal ratings-based approach
  • Treatment of collateral and credit risk mitigation techniques
  • Requirements for market risk and operational risk
  • Effect of the output floor applied to internal approaches
  • Reading prudential reporting returns

3Liquidity, leverage and the impact of the revisions

Measuring what the new framework shifts

  • Liquidity coverage ratio and composition of the liquid asset buffer
  • Net stable funding ratio and balance sheet structure
  • Leverage ratio and total exposure measure
  • Main changes introduced by the final Basel III reforms
  • Consequences for pricing and balance sheet trade-offs

Who is it for

Staff in finance, risk, internal control and audit functions, as well as relationship managers and account officers who wish to understand the prudential framework.

Prerequisites

No prerequisites

Dates & locations

36 scheduled dates between November 2026 and December 2027. Seats are confirmed in the order enquiries are received.

November 2026

December 2026

January 2027

February 2027

March 2027

April 2027

May 2027

June 2027

September 2027

October 2027

November 2027

December 2027

None of these dates suit you? We open additional sessions on request, and any programme can be run privately for your team.

Practical details

Before the programme
Online positioning questionnaire. Your development objectives are shared with the trainer, who tailors the practical case studies to your context.
Teaching methods
Theoretical input, workshops and practical case studies. Digital course materials and method sheets provided.
Assessment
Multiple-choice tests and role-play exercises. Assessment of learning at the start and end of the programme, with immediate and 60-day follow-up evaluations.
After the programme
One year of access to the e-learning platform. Self-assessment of the skills acquired and a 30-day follow-up session with your trainer.
How to register
Registration online or on the basis of a quotation.
Lead time
11 working days after confirmation of registration.
Accessibility
Accessible to people of determination. Contact our accessibility coordinator to design a suitable solution: contact@mpf-academy.ae
Start dates
Rolling intake: in addition to the scheduled sessions, this programme can start on request.