Banking Regulation and Supervision (Advanced Program)

About Course

This advanced program provides a rigorous examination of the legal and regulatory frameworks governing banking institutions and the supervisory practices that ensure their soundness. Participants will study the institutional and legal foundations of central banking and banking regulation, including authorization and licensing procedures, capital requirements (CET1, AT1, T2, and buffers), and the qualitative aspects of supervision such as Pillar 2 requirements and the SREP process . The curriculum covers fit and proper assessments of management, governance standards, and the supervision of banking groups, alongside emerging challenges such as the greening of finance . Participants will also explore the relationships between monetary policy, macroprudential supervision, and lending of last resort, with comparative analysis of the European, US, and other major jurisdictions . This program is designed for senior banking supervisors, legal experts, and policymakers engaged in prudential regulation.

Course Content

Module 1: The Architecture of Prudential Regulation – Rationale, Evolution, and Institutional Frameworks

Lesson 1.1: The Unique Rationale for Banking Regulation – Why Banks Are Not Ordinary Firms
Lesson 1.2: Historical Evolution – From the Great Depression to the Global Financial Crisis
Lesson 1.3: The Basel Committee on Banking Supervision – Global Standard-Setter
Lesson 1.4: Microprudential vs. Macroprudential Supervision – The Two Pillars of Stability
Lesson 1.5: US Banking Architecture – The Dual Banking System and the Federal Agencies
Lesson 1.6: European Banking Architecture – The Single Supervisory Mechanism (SSM) and the Banking Union
Lesson 1.7: The Single Rule Book – Harmonization of Prudential Standards in Europe
Lesson 1.8: Risk-Based Supervision – From Compliance to Forward-Looking Risk Assessment

Module 2: Basel IV / Basel 3.1 – The New Capital Adequacy Framework

Lesson 2.1: From Basel III to Basel IV – The Finalization of the Post-Crisis Reforms
Lesson 2.2: The Three Pillars of Basel IV – Capital, Supervisory Review, and Market Discipline
Lesson 2.3: Credit Risk – The New Standardized Approach (SA-CR) and the Expanded Risk-Based Approach (ERBA)
Lesson 2.4: Market Risk – The Fundamental Review of the Trading Book (FRTB)
Lesson 2.5: Operational Risk – The End of Internal Models and the Standardized Measurement Approach
Lesson 2.6: Credit Valuation Adjustment (CVA) – Standardization and Risk Sensitivity
Lesson 2.7: The Output Floor – The “Seismic Change” Constraining Internal Models
Lesson 2.8: Global Implementation, National Discretions, and Competitive Implications

Module 3: Market Risk, Interest Rate Risk, and the Fundamental Review of the Trading Book (FRTB)

Lesson 3.1: The Evolution of Market Risk Regulation – From the 1996 Amendment to FRTB
Lesson 3.2: The FRTB Architecture – Trading Book Boundary, the Two Approaches, and Scope
Lesson 3.3: The Standardized Approach – Sensitivities-Based Method (SbM), Default Risk Charge (DRC), and Residual Risk Add-on (RRAO)
Lesson 3.4: The Internal Models Approach (IMA) – Eligibility, Expected Shortfall, and Risk Factor Eligibility
Lesson 3.5: Model Validation – Back-Testing, P&L Attribution, and the “Desk” Approval Process
Lesson 3.6: The US Recalibration – A Capital-Neutral Approach to FRTB
Lesson 3.7: Interest Rate Risk in the Banking Book (IRRBB) – The Standardized Framework
Lesson 3.8: Systemic Events and Supervisory Lessons – SVB, First Republic, and Credit Suisse

Module 4: The Supervisory Review and Evaluation Process (SREP) and Pillar 2

Lesson 4.1: The Conceptual Foundations of Pillar 2 – Beyond Minimum Capital Requirements
Lesson 4.2: The Architecture of SREP – The Four Assessment Pillars
Lesson 4.3: ICAAP – The Institution’s Own Capital Adequacy Assessment
Lesson 4.4: ILAAP – Liquidity Adequacy as a Parallel Assessment
Lesson 4.5: From ICAAP to P2R – The Supervisory Calibration of Pillar 2 Requirements
Lesson 4.6: Supervisory Stress Testing – Methodologies and Outcomes
Lesson 4.7: The Integration of Emerging Risks – Climate, Cyber, and Operational Resilience
Lesson 4.8: Cross-Jurisdictional Perspectives – CCAR, SREP, PRA, and APRA Compared

Module 5: Liquidity Risk and Funding – LCR, NSFR, and Contingency Planning

Lesson 5.1: The Conceptual Foundations of Liquidity Risk – Why Banks Are Structurally Vulnerable
Lesson 5.2: The Liquidity Coverage Ratio (LCR) – Surviving a 30-Day Stress Scenario
Lesson 5.3: The Net Stable Funding Ratio (NSFR) – Ensuring Structural Funding Stability
Lesson 5.4: Intraday Liquidity Risk – The “Hidden” Liquidity Risk
Lesson 5.5: Funding Liquidity Risk – Deposit Stability, Wholesale Funding, and Market Access
Lesson 5.6: The Contingency Funding Plan (CFP) – Operational Readiness and Governance
Lesson 5.7: Liquidity Stress Testing – Scenarios, Assumptions, and Supervisory Expectations
Lesson 5.8: Cross-Jurisdictional Implementation – LCR and NSFR in Europe, USA, UK, and Asia

Module 6: Model Risk Management (MRM) and AI Governance in Banking

Lesson 6.1: The Conceptual Foundations of Model Risk Management – Definition, Scope, and Rationale
Lesson 6.2: The US Framework – SR 11-7, the 2011 Guidance, and the 2026 Revised Guidance
Lesson 6.3: The European Framework – EBA Guidelines, PRA SS1/23, and the AI Act
Lesson 6.4: The Global Convergence – RBI Guidance and Emerging Market Standards
Lesson 6.5: The Model Lifecycle – Inventory, Tiering, Validation, Monitoring, and Decommissioning
Lesson 6.6: AI and Machine Learning – The New Risk Frontier and Adapting MRM Frameworks
Lesson 6.7: The Future of MRM – Agentic AI, Dynamic Validation, and the Evolving Regulatory Landscape
Lesson 6.8: Comparative Analysis and Integration – MRM, Governance, and the Single Framework

Module 7: Recovery Planning, Early Intervention, and Resolution – The “Living Will” Framework

Lesson 7.1: The Conceptual Foundations of Recovery and Resolution – Eliminating “Too-Big-To-Fail”
Lesson 7.2: Recovery Planning – The Bank’s Own Strategy for Restoring Financial Strength
Lesson 7.3: Early Intervention – Supervisory Powers to Prevent Deterioration
Lesson 7.4: Resolution Frameworks – The EU’s BRRD and the Single Resolution Mechanism (SRM)
Lesson 7.5: The US Framework – Title II of Dodd-Frank and Orderly Liquidation Authority (OLA)
Lesson 7.6: Bail-in vs. Bail-out – Imposing Losses on Shareholders and Creditors
Lesson 7.7: Cross-Border Resolution – Colleges of Supervisors and Crisis Management Groups
Lesson 7.8: Systemic Events and Supervisory Lessons – Credit Suisse, SVB, and First Republic

Module 8: Macroprudential Policy, Systemic Risk, and Stress Testing

Lesson 8.1: The Conceptual Foundations of Macroprudential Policy – From Micro to Macro
Lesson 8.2: Systemic Risk Identification – Interconnectedness, Procyclicality, and Concentration
Lesson 8.3: Macroprudential Instruments – CCyB, LTV/DTI Limits, and Sectoral Capital Requirements
Lesson 8.4: The US Framework – The Financial Stability Oversight Council (FSOC)
Lesson 8.5: The European Framework – The European Systemic Risk Board (ESRB)
Lesson 8.6: Supervisory Stress Testing – Methodologies, Scenarios, and Outcomes (CCAR, EBA, ECB)
Lesson 8.7: The Use of Stress Test Results – Capital Buffers, Dividends, and Market Discipline
Lesson 8.8: Emerging Risks and the Future of Macroprudential Supervision – Climate, Cyber, and Digital Assets

Module 9: The Regulation and Supervision of FinTech, Digital Assets, and AI-Driven Banking

Lesson 9.1: The Conceptual Foundations of FinTech Regulation – Innovation, Risk, and the Regulatory Perimeter
Lesson 9.2: Regulating Digital Payments and Neo-Banks – Licensing, Oversight, and Consumer Protection
Lesson 9.3: BigTech in Financial Services – Competition, Data Privacy, and Systemic Risk
Lesson 9.4: Crypto-Assets and Stablecoins – The EU’s MiCA Framework
Lesson 9.5: The US Approach to Digital Assets – Fragmentation, Enforcement, and Evolving Policy
Lesson 9.6: Central Bank Digital Currencies (CBDCs) – Design, Implications, and Regulatory Challenges
Lesson 9.7: RegTech and SupTech – Technology for Compliance and Supervision
Lesson 9.8: The Future of Financial Regulation – AI, Decentralized Finance (DeFi), and the Evolving Regulatory Perimeter

Module 10: Global Governance, International Cooperation, and the Future of Supervision

Lesson 10.1: The Global Architecture of Financial Regulation – The Basel Committee, FSB, and G20
Lesson 10.2: Regulatory Fragmentation – Divergence in Implementation of Global Standards
Lesson 10.3: The Mechanisms of International Cooperation – Colleges of Supervisors, CMGs, and MoUs
Lesson 10.4: The Intersection of Sovereign Debt and Banking – The G20 Common Framework and Debt Transparency
Lesson 10.5: Climate-Related Financial Risks – The New Frontier of Prudential Supervision
Lesson 10.6: Data-Driven Supervision and the Digital Transformation of Regulatory Authorities
Lesson 10.7: The Future of Banking Supervision – AI, Cyber, and the Evolving Role of the Supervisor
Lesson 10.8: The New Global Consensus – Modernization, Fragmentation, and the Path Forward

About Course

Course Content

Module 1: The Architecture of Prudential Regulation – Rationale, Evolution, and Institutional Frameworks

Lesson 1.1: The Unique Rationale for Banking Regulation – Why Banks Are Not Ordinary Firms

Lesson 1.2: Historical Evolution – From the Great Depression to the Global Financial Crisis

Lesson 1.3: The Basel Committee on Banking Supervision – Global Standard-Setter

Lesson 1.4: Microprudential vs. Macroprudential Supervision – The Two Pillars of Stability

Lesson 1.5: US Banking Architecture – The Dual Banking System and the Federal Agencies

Lesson 1.6: European Banking Architecture – The Single Supervisory Mechanism (SSM) and the Banking Union

Lesson 1.7: The Single Rule Book – Harmonization of Prudential Standards in Europe

Lesson 1.8: Risk-Based Supervision – From Compliance to Forward-Looking Risk Assessment

Module 2: Basel IV / Basel 3.1 – The New Capital Adequacy Framework

Lesson 2.1: From Basel III to Basel IV – The Finalization of the Post-Crisis Reforms

Lesson 2.2: The Three Pillars of Basel IV – Capital, Supervisory Review, and Market Discipline

Lesson 2.3: Credit Risk – The New Standardized Approach (SA-CR) and the Expanded Risk-Based Approach (ERBA)

Lesson 2.4: Market Risk – The Fundamental Review of the Trading Book (FRTB)

Lesson 2.5: Operational Risk – The End of Internal Models and the Standardized Measurement Approach

Lesson 2.6: Credit Valuation Adjustment (CVA) – Standardization and Risk Sensitivity

Lesson 2.7: The Output Floor – The “Seismic Change” Constraining Internal Models

Lesson 2.8: Global Implementation, National Discretions, and Competitive Implications

Module 3: Market Risk, Interest Rate Risk, and the Fundamental Review of the Trading Book (FRTB)

Lesson 3.1: The Evolution of Market Risk Regulation – From the 1996 Amendment to FRTB

Lesson 3.2: The FRTB Architecture – Trading Book Boundary, the Two Approaches, and Scope

Lesson 3.3: The Standardized Approach – Sensitivities-Based Method (SbM), Default Risk Charge (DRC), and Residual Risk Add-on (RRAO)

Lesson 3.4: The Internal Models Approach (IMA) – Eligibility, Expected Shortfall, and Risk Factor Eligibility

Lesson 3.5: Model Validation – Back-Testing, P&L Attribution, and the “Desk” Approval Process

Lesson 3.6: The US Recalibration – A Capital-Neutral Approach to FRTB

Lesson 3.7: Interest Rate Risk in the Banking Book (IRRBB) – The Standardized Framework

Lesson 3.8: Systemic Events and Supervisory Lessons – SVB, First Republic, and Credit Suisse

Module 4: The Supervisory Review and Evaluation Process (SREP) and Pillar 2

Lesson 4.1: The Conceptual Foundations of Pillar 2 – Beyond Minimum Capital Requirements

Lesson 4.2: The Architecture of SREP – The Four Assessment Pillars

Lesson 4.3: ICAAP – The Institution’s Own Capital Adequacy Assessment

Lesson 4.4: ILAAP – Liquidity Adequacy as a Parallel Assessment

Lesson 4.5: From ICAAP to P2R – The Supervisory Calibration of Pillar 2 Requirements

Lesson 4.6: Supervisory Stress Testing – Methodologies and Outcomes

Lesson 4.7: The Integration of Emerging Risks – Climate, Cyber, and Operational Resilience

Lesson 4.8: Cross-Jurisdictional Perspectives – CCAR, SREP, PRA, and APRA Compared

Module 5: Liquidity Risk and Funding – LCR, NSFR, and Contingency Planning

Lesson 5.1: The Conceptual Foundations of Liquidity Risk – Why Banks Are Structurally Vulnerable

Lesson 5.2: The Liquidity Coverage Ratio (LCR) – Surviving a 30-Day Stress Scenario

Lesson 5.3: The Net Stable Funding Ratio (NSFR) – Ensuring Structural Funding Stability

Lesson 5.4: Intraday Liquidity Risk – The “Hidden” Liquidity Risk

Lesson 5.5: Funding Liquidity Risk – Deposit Stability, Wholesale Funding, and Market Access

Lesson 5.6: The Contingency Funding Plan (CFP) – Operational Readiness and Governance

Lesson 5.7: Liquidity Stress Testing – Scenarios, Assumptions, and Supervisory Expectations

Lesson 5.8: Cross-Jurisdictional Implementation – LCR and NSFR in Europe, USA, UK, and Asia

Module 6: Model Risk Management (MRM) and AI Governance in Banking

Lesson 6.1: The Conceptual Foundations of Model Risk Management – Definition, Scope, and Rationale

Lesson 6.2: The US Framework – SR 11-7, the 2011 Guidance, and the 2026 Revised Guidance

Lesson 6.3: The European Framework – EBA Guidelines, PRA SS1/23, and the AI Act

Lesson 6.4: The Global Convergence – RBI Guidance and Emerging Market Standards

Lesson 6.5: The Model Lifecycle – Inventory, Tiering, Validation, Monitoring, and Decommissioning

Lesson 6.6: AI and Machine Learning – The New Risk Frontier and Adapting MRM Frameworks

Lesson 6.7: The Future of MRM – Agentic AI, Dynamic Validation, and the Evolving Regulatory Landscape

Lesson 6.8: Comparative Analysis and Integration – MRM, Governance, and the Single Framework

Module 7: Recovery Planning, Early Intervention, and Resolution – The “Living Will” Framework

Lesson 7.1: The Conceptual Foundations of Recovery and Resolution – Eliminating “Too-Big-To-Fail”

Lesson 7.2: Recovery Planning – The Bank’s Own Strategy for Restoring Financial Strength

Lesson 7.3: Early Intervention – Supervisory Powers to Prevent Deterioration

Lesson 7.4: Resolution Frameworks – The EU’s BRRD and the Single Resolution Mechanism (SRM)

Lesson 7.5: The US Framework – Title II of Dodd-Frank and Orderly Liquidation Authority (OLA)

Lesson 7.6: Bail-in vs. Bail-out – Imposing Losses on Shareholders and Creditors

Lesson 7.7: Cross-Border Resolution – Colleges of Supervisors and Crisis Management Groups

Lesson 7.8: Systemic Events and Supervisory Lessons – Credit Suisse, SVB, and First Republic

Module 8: Macroprudential Policy, Systemic Risk, and Stress Testing

Lesson 8.1: The Conceptual Foundations of Macroprudential Policy – From Micro to Macro

Lesson 8.2: Systemic Risk Identification – Interconnectedness, Procyclicality, and Concentration

Lesson 8.3: Macroprudential Instruments – CCyB, LTV/DTI Limits, and Sectoral Capital Requirements

Lesson 8.4: The US Framework – The Financial Stability Oversight Council (FSOC)

Lesson 8.5: The European Framework – The European Systemic Risk Board (ESRB)

Lesson 8.6: Supervisory Stress Testing – Methodologies, Scenarios, and Outcomes (CCAR, EBA, ECB)

Lesson 8.7: The Use of Stress Test Results – Capital Buffers, Dividends, and Market Discipline

Lesson 8.8: Emerging Risks and the Future of Macroprudential Supervision – Climate, Cyber, and Digital Assets

Module 9: The Regulation and Supervision of FinTech, Digital Assets, and AI-Driven Banking

Lesson 9.1: The Conceptual Foundations of FinTech Regulation – Innovation, Risk, and the Regulatory Perimeter

Lesson 9.2: Regulating Digital Payments and Neo-Banks – Licensing, Oversight, and Consumer Protection

Lesson 9.3: BigTech in Financial Services – Competition, Data Privacy, and Systemic Risk

Lesson 9.4: Crypto-Assets and Stablecoins – The EU’s MiCA Framework

Lesson 9.5: The US Approach to Digital Assets – Fragmentation, Enforcement, and Evolving Policy