Basel Accord Standards

BASEL ACCORD STANDARDS & SUSTAINABILITY

Regulatory bodies aim to assist financial entities in preparing for and reducing risks. The Basel Accord principles were established for this purpose. At BACT Centre, our training courses delve into these principles, offering insights into their creation and significance. Click the link below to view our courses on the principles of the Basel Accord.

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Following the Basel Accord Standards fosters trust among regulators, investors, business owners, and the public. While not covering all financial risk concerns, these principles establish a compliance framework to oversee corporate managers and prevent recklessness. The Basel Committee on Banking Supervision (BCBS) created them to outline standards for systematic risk management and regulatory compliance.

Basel Accord I (1 & 1.5)

The Basel Accord (also known as Basel 1) was developed with careful consideration and a comprehensive focus on determining regulatory capital and capturing credit risk. Later on, Basel 1.5 was introduced to include internal market risk using Value-At-Risk (VAR) methodology.

Basel Accord II (2 & 2.5)

Numerous financial institutions had already implemented internal techniques that surpassed the standards of Basel 1 compliance. However, with the implementation of Basel 2, regulatory compliance was further improved in the domains of credit risk, market risk, and operational risk. The introduction of Pillars 1, 2, and 3 ensured clear accountability and reporting.

Basel Accord III (3)

The Basel 2 framework was improved upon and evolved into Basel 3 for better capital adequacy reporting. One of the key risk elements included in this updated framework is liquidity. This means that there is now consideration for liquidity ratios, leverage ratios, liquidity coverage ratios, and 30-day net cash flows within the liquidity framework.

Basel Accord IV (4)

Basel 4 builds upon the foundation set by Basel 3, with a particular focus on improving capital and lending regulations. Additionally, the framework incorporates non-financial factors, such as sustainability, to promote environmental accountability beyond just financial performance.

Sustainability & New Technology

At BACT Centre, we possess extensive knowledge and experience in the fields of sustainability and modern technology, despite the fact that the Basel Accord principles do not explicitly cover these areas. Our team is capable of delivering effective and relevant solutions to organisations and countries of all sizes and locations, incorporating the latest technological advancements and sustainable practices. Our broad understanding of these topics enables us to offer valuable advice and guidance to successfully navigate the ever-changing landscape of technology and sustainability in the financial sector.

Environmental

Our approach aims to effectively manage resources while promoting environmental restoration and preservation projects. This ensures the protection of the environment for future generations. We provide guidance on adapting investments to support these initiatives.

RISK

Our focus is not only on the risk and return concept, but also on taking into account issues of sustainability. Our goal is to assist as many individuals as possible in enhancing our ecosystem.

Economy

Investing in research and development, energy-efficient projects, and improving the cost of living in local communities can be a challenging task. We are here to assist in integrating sustainability as a strategic approach.

Social

Our aim is to assist entities and regulators in developing ethical policies, organising educational road shows, and devising just taxation policies. Our ultimate goal is to create a better world for future generations.