Capital market Short courses

Global Finance and regulations

9- Basel II & Base III for Islamic Banks

Basel III in Islamic Banks
• An overview of the Basel II
• The new minimum capital requirement
• Capital conservation buffer
• Counterparty credit risk
• Liquidity risk management
• Loss based provisioning

Operational Risk for Islamic Banks
• The identification of operational risk
• The key issues of operational risk
• Operational loss database
• Developing key risk indicators

Basil III and Capital Management Strategies in Islamic Banks
• Risk based economic capital and capital management
• Risk Adjusted Performance Measurement
• The internal capital adequacy assessment process
• The implications of Basel III for Islamic Banks
• Liquidity changes impact the Islamic banking model
• The implications of Basel III for risk and capital management strategies
• Basel III implementation challenges

Capital Market & conventional banking

10- The Regulatory Response to the Global Banking Crisis
• Market efficiency,
• Securitisation,
• Market discipline,
• Quantity and quality of bank capital,
• Hybrid capital,
• Trading book capital, monetary and fiscal policy,
• Macro-prudential regulation and counter-cyclicality,
• Cyclical capital buffers,
• Gross leverage ratios,
• New supervisory approach,
• Bank risk management –
• Firm skills, processes and structures,
• Utility banking and investment banking,
• Group-wide liquidity,
• Cross-border banking.

11- Capital Management
• Market and credit risk management,
• Basel II,
• The IRB approach,
• Model validation,
• Capital quality,
• Basel II7III Tier 1 capital ratio v tangible equity to tangible asset ratio,
• The role of CRAs,
• Stress testing,
• Asset encumbrance,
• The ongoing role of securitisation,
• Capital allocation between business units

12- Liquidity Management
• The New FSA Liquidity Regime,
• Individual Liquidity Adequacy Standards (ILAS) and Individual Liquidity Guidance (ILG),
• Liquidity risks and mitigates,
• Measurement and reporting,
• Sources of funding,

13- Investment complaints
• Anti-Money Laundering Issues
• Market Abuse Issues
• Communicating Compliance
• How to build and develop a world class Compliance Function
• Conflicts of Interest
• Influencing and Negotiation Skills for Compliance Officers
• Advanced Risk Management for Compliance Professionals

14-Trading and Compliance
• Current Regulatory and Compliance Challenges in Investment Banking
• Distinguish between exchange-traded and OTC interest rate derivatives
• Price and settle an interest rate swap
• Structure a basis options strategy
• Hedge and arbitrage forward foreign exchange positions
• Understand how to trade volatility
• Gain a practical understanding of option pricing
• Learn to be an options market maker
• Learn to hedge the volatility risk of an options portfolio
• Get hands-on experience of trading options using state-of-the-art simulation software
• Learn standard option trading strategies with the CME strategy guide
• Benefit from a practitioner-led approach

15-Commodity fundamentals

• Identify the links between different commodity markets
• The main traded commodity markets
• Why commodity markets are essentially forward markets
• Forward pricing
• The concept of a forward price
• Why normal forward pricing conditions do not apply in commodity markets
• Conditions of contango and backwardation and the situations in which they are most likely to occur
• The main commodity participants and their likely activity along the forward curve
• Financial market participants
• How market participants can invest in commodities (e.g. index funds vs. ETPs vs. MTNs)

• The main commodity indices used by the market

• The main sources of return from index investing (i.e. the concept of the roll yield)

• The main features of exchange traded products
• Structured commodity products

16-Sales Contracts, Conventional and Islamic

• Conventional sales contracts
• Murabahah/Bai bi Thamin al Ajil as Credit Instruments
• Tawarruq and Bai Al Ainah concepts
• Original Tawarruq
• Organized Tawarruq and London Metals contracts

Mixing Sales Contracts with Other Forms
• Why do they seem to be favored by some Islamic scholars?
• What are the salient features for pricing these concepts?
• How can they be used to meet simple cash flow needs of companies and fit within banking regulations?
• How could we combine them with the sales contracts?

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