EduMarkets Banking Regulation

The module covers how banks are regulated after the 2008 financial crisis. Users work through the Basel III capital stack, from CET1 through Additional Tier 1 and Tier 2, and see how the risk-weighted assets the stack is measured against are calculated. The liquidity ratios (LCR and NSFR) govern short-term and structural funding. The leverage ratio acts as a backstop where risk-weighting can under-capture the true exposure.

Handbook chapters

  1. Overview
  2. Capital & Buffers
  3. RWA Frameworks
  4. Liquidity
  5. Pillar 2 & the Capital Requirement Stack
  6. Stress Testing and the Stress Capital Buffer
  7. Interest Rate Risk in the Banking Book
  8. Resolution and Bail-in
  9. Rules Alongside the Capital Framework

Tools and exercises

  • Balance Sheet
  • IRRBB
  • Stress Test
  • Bail-in
  • Capital Allocation
  • Exercises
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