The international financial crisis of 2007-2009 and its aftermath have become known as the Great Recession and is the most severe financial crisis since the Great Depression of 1929-1933. Many industrial countries suffered severe financial turmoil, economic contraction and government debt problems, the result of which will be seen for many years to come. Developing countries were also hit, mainly because of the reduced demands for their exports from industrial countries, but also because of reduced financial flows.
The crisis has revealed many shortcomings in the functioning and regulation of financial markets, as well as in the behaviour of role players in the markets. Prior to the crisis, international cooperation on banking regulation had resulted in two multilateral accords, named Basel I and Basel II, which were developed under the leadership of the Basel Committee on Banking Supervision. Basel III was concluded in December 2010 (revised in June 2011) as a “global regulatory framework for more resilient banks and banking systems”. It is an attempt to address many of the short-coming which the financial crisis exposed through better financial regulation and better coordination globally.
This training course aims at improving the participant’s understanding of the nature of banking and its functions and limitations in the modern economy, as well as the nature and purpose of the key Basel III measures to address and contain the risks to society of banking activities in imperfect financial markets.
At the end of the course, the participants should be able to:
- Explain the importance and functions of banks
- Explain why the regulation of banks is necessary
- Compare the different types of and role-players in banking regulation
- Assess the nature and purpose of the key Basel III recommendations with reference to financial market and regulatory shortcomings as revealed by the international financial crisis of 2007-2009.
Content and Structure
This online course will cover the following modules:
- Module 1: Basis of Banking and the Business of Banking
- Module 2: Why do Banks need Regulation?
- Module 3: What Kinds of Regulation?
- Module 4: What does Basel III seek to achieve?
In order to ensure the best possible outreach, the course will be delivered through e-learning. Through a multiple-instructional setting, the goal is to achieve the learning objectives by means of learning technologies that match personal learning styles and by the inclusion of non-linear learning that aims at the development of just-in-time skills of adult learners. At the same time, in order to allow participants maximum flexibility of scheduling, the learning will be conducted in an asynchronous manner. Using a state-of-the-art training architecture, UNITAR will combine self-learning with assessments and online discussions. The pedagogy - adapted specifically to professionals in full-time work - will help train participants through various experiences: absorb (read); do (activity); interact (socialize); reflect (relate to one’s own reality).
The intended audience comprises persons involved in the financial sector or with regular interaction with financial institutions, specifically:
- Private sector bankers
- Central bankers
- Financial regulators
- Financial analysts in national government treasuries
- Dealers in the financial sector (all markets)
- Financial market analysts
- Financial managers of financial and non-financial companies, institutional investors and development finance institutions
- Macro-, monetary and financial economists.