Banking Regulation Course

Lesson 1 • Why Banks Are Regulated

Examines the market failures and systemic risks that justify regulatory intervention. Connects economic theory to the practical need for oversight.

Lesson 2 • Historical Evolution of Bank Oversight

Traces regulatory development from early deposit-taking rules to modern frameworks. Shows how crises shaped current supervisory structures.

Lesson 3 • Structure of a Regulatory Framework

Explains how legislation, secondary rules, guidance, and supervisory expectations layer together. Prepares students to navigate multi-level regulatory documents.

Lesson 4 • Core Regulatory Objectives

Defines safety, soundness, consumer protection, and financial inclusion as primary goals. Links each objective to specific regulatory tools.

Lesson 1 • The Authorization Process

Walks through application submission, supervisory review, and conditional approval stages. Connects procedural steps to regulatory risk assessment logic.

Lesson 2 • Ongoing License Obligations

Identifies post-authorization duties including notification requirements and material change approvals. Shows how licensing is a continuous, not one-time, obligation.

Lesson 3 • Licensing Requirements and Criteria

Details minimum capital, governance, and business plan requirements for authorization. Establishes the gatekeeping function of licensing in the regulatory system.

Lesson 1 • Risk-Weighted Assets and Measurement

Covers credit, market, and operational risk weighting methodologies. Connects asset classification to the denominator of capital ratio calculations.

Lesson 2 • Capital Buffers and Minimum Ratios

Introduces conservation, countercyclical, and systemic buffers layered above minimum requirements. Shows how buffers interact with dividend and distribution restrictions.

Lesson 3 • Components of Regulatory Capital

Distinguishes core equity, additional instruments, and tier classifications used in prudential rules. Enables students to read and interpret a bank's capital structure.

Lesson 4 • Purpose and Logic of Capital Requirements

Explains how capital buffers protect depositors and the financial system from bank losses. Grounds the technical framework in its risk-absorption rationale.

Lesson 1 • Stable Funding Requirements

Explains the net stable funding ratio and its one-year structural funding horizon. Links stable funding to the sustainability of a bank's business model.

Lesson 2 • Short-Term Liquidity Coverage Standards

Covers the liquidity coverage ratio, its components, and the stress scenario it addresses. Connects the ratio to a bank's ability to survive a 30-day stress event.

Lesson 3 • Supervisory Monitoring and Reporting

Covers liquidity reporting obligations, supervisory metrics, and early warning indicators. Connects data submission requirements to supervisory intervention triggers.

Lesson 4 • Liquidity Risk in Banking

Defines funding and market liquidity risk and explains how bank runs materialize. Establishes the regulatory problem that liquidity rules are designed to solve.

Lesson 1 • Internal Controls and Audit Requirements

Details regulatory expectations for internal control systems, audit plans, and findings remediation. Links control effectiveness to supervisory assessment of governance quality.

Lesson 2 • Risk Appetite and Risk Culture

Defines risk appetite frameworks and the behavioral dimensions of risk culture. Links culture and appetite to governance failures observed in past banking crises.

Lesson 3 • Regulatory Governance Expectations

Outlines supervisory requirements for board composition, independence, and accountability. Anchors governance rules in the regulatory objective of sound management.

Lesson 4 • Three Lines of Defense Model

Explains the roles of business units, risk functions, and internal audit in control frameworks. Connects the model to regulatory expectations for independent oversight.

Lesson 1 • Sanctions Compliance in Banking

Addresses screening obligations, sanctions list management, and breach response procedures. Connects sanctions compliance to both regulatory and geopolitical risk.

Lesson 2 • Building an Effective Compliance Program

Covers program governance, training, independent testing, and regulatory examination readiness. Integrates all financial crime controls into a coherent compliance architecture.

Lesson 3 • Transaction Monitoring and Suspicious Activity

Explains how banks detect unusual patterns and fulfill suspicious activity reporting duties. Links monitoring system design to regulatory expectations for effectiveness.

Lesson 4 • Customer Due Diligence and Know Your Customer

Covers identification, verification, and ongoing monitoring requirements for customers. Connects due diligence depth to customer risk classification.

Lesson 1 • Complaint Handling and Redress

Details regulatory requirements for complaint receipt, investigation, and resolution timelines. Links effective redress to supervisory assessment of conduct culture.

Lesson 2 • Vulnerable Customers and Inclusion

Addresses regulatory expectations for identifying and supporting customers in vulnerable circumstances. Extends conduct obligations to financial inclusion and accessibility.

Lesson 3 • Conduct Regulation Principles and Scope

Defines the conduct regulatory mandate and distinguishes it from prudential supervision. Establishes the customer-outcome focus that drives conduct rules.

Lesson 4 • Disclosure and Transparency Requirements

Examines pre-contractual, contractual, and ongoing disclosure obligations for banking products. Connects clear communication to informed customer decision-making.

Lesson 1 • Recovery Planning Requirements

Explains what regulators require in a bank's recovery plan and how plans are assessed. Connects recovery options to capital and liquidity stress scenarios.

Lesson 2 • Loss-Absorbing Capacity Requirements

Addresses minimum requirements for own funds and eligible liabilities used to absorb losses in resolution. Connects bail-in capacity to the protection of public funds.

Lesson 3 • Crisis Management and Cross-Border Coordination

Covers supervisory colleges, crisis management groups, and information-sharing protocols. Addresses the complexity of resolving internationally active banks.

Lesson 4 • Resolution Tools and Their Application

Examines the toolkit available to resolution authorities, including bail-in, bridge banks, and asset separation. Evaluates when each tool is appropriate given failure circumstances.