Additional information
by Juan Ramirez (Author)
A deeper examination of Basel III for more effective capital enhancement
The Handbook of Basel III Capital - Enhancing Bank Capital in Practice delves deep into the principles underpinning the capital dimension of Basel III to provide a more advanced understanding of real-world implementation. Going beyond the simple overview or model, this book merges theory with practice to help practitioners work more effectively within the regulatory framework, and utilise the complex rules to more effectively allocate and enhance capital. A European perspective covers the CRD IV directive and associated guidance, but practitioners across all jurisdictions will find value in the strategic approach to decisions surrounding business lines and assets; an emphasis on analysis urges banks to shed unattractive positions and channel capital toward opportunities that actually fit their risk and return profile. Real-world cases demonstrate successful capital initiatives as models for implementation, and in-depth guidance on Basel III rules equips practitioners to more effectively utilise this complex regulatory treatment.
The specifics of Basel III implementation vary, but the underlying principles are effective around the world. This book expands upon existing guidance to provide a deeper working knowledge of Basel III utility, and the insight to use it effectively.
- Improve asset quality and risk and return profiles
- Adopt a strategic approach to capital allocation
- Compare Basel III implementation varies across jurisdictions
- Examine successful capital enhancement initiatives from around the world
There is a popular misconception about Basel III being extremely conservative and a deterrent to investors seeking attractive returns. In reality, Basel III presents both the opportunity and a framework for banks to improve their assets and enhance overall capital - the key factor is a true, comprehensive understanding of the regulatory mechanisms. The Handbook of Basel III Capital - Enhancing Bank Capital in Practice provides advanced guidance for advanced practitioners, and real-world implementation insight.
Front Jacket
"Juan Ramirez makes the most arcane topics instantly accessible. Highly recommended."
--Moorad Choudhry, CEO, City of London Capital Ltd
Handbook of Basel III Capital opens up a peerless perspective on how different elements affect a bank's regulatory capital. The large number of real-life case studies provide a strategic approach to capital that practitioners may find useful to improve a bank's capital and risk-return profiles. While Basel III is global in scope, its practice varies by nation. This treatment thoroughly examines the European Union's Capital Requirements Directive IV (CRD IV and CRR), but the versatile framework is completely useful across all jurisdictions.
Going far beyond general regulatory explanations found in other books, this advanced guide digs deep into the vulnerable Common Equity Tier 1 capital, the core capital of a bank according to Basel III, and proposes a strategic approach to identifying opportunities to enhance regulatory capital levels. Regulatory capital professionals, investment bankers, auditors and consultants can put their capital enhancement strategies way ahead of the curve by:
- Seeing how other banks increased Common Equity Tier 1 capital, decreased risk weighted assets or did both simultaneously
- Understanding the latest information and strategies surrounding the filters from Common Equity Tier 1 and the Additional Tier 1 instruments
Handbook of Basel III Capital equips you with the true, comprehensive grasp of the regulatory mechanisms so you can make them work for you.
Back Jacket
PRAISE FOR HANDBOOK OF BASEL III CAPITAL
"Handbook of Basel III Capital is a vital guide for professionals in the regulatory bank capital arena. The meticulous approach of Juan Ramirez and his unique blend of regulatory capital, capital markets and accounting analysis of real-life transactions results in a peerless book to help devise initiatives to heighten bank capital."
--Luis Blanc, Director of Capital Structure and Capital Optimization, Banco Santander Group
"This book presents a thorough understanding of the elements that comprise bank capital. The use of real-life illustrations of capital enhancement initiatives makes the book an excellent resource for bankers and regulatory capital management specialists, but the real value-added is in the author's writing style: Mr Ramirez makes the most arcane topics instantly accessible. Highly recommended."
--Moorad Choudhry, CEO, City of London Capital Ltd; Visiting Professor, Kent University Business School
"Ramirez's Handbook of Basel III Capital provides a deep analysis of the key elements that comprise a bank's capital base. The coverage is comprehensive and includes key prudential filters, valuation adjustments and deductions. The real-life case studies presented provide regulatory, accounting and strategic insights and make this book an essential resource for regulatory capital professionals."
--Enrique Benito, Senior Manager - Banking & Capital Markets, Deloitte
Author Biography
JUAN RAMIREZ is a senior professional at Deloitte in London, assessing the regulatory capital impact, accounting treatment, and risk management of complex transactions. He has a strong expertise in providing advice on the design of specific complex financial instruments and transactions to enhance regulatory capital. During his career mostly in London, he has worked for BNP Paribas, JP Morgan, Lehman Brothers, Barclays Capital, and Banco Santander. He has devoted more than twenty years to marketing structured derivatives solutions, including commodity, credit, equity, fixed income, and FX. He is the author of Accounting for Derivatives and Handbook of Corporate Derivatives and Equity Capital Markets, both published by Wiley. Juan holds a BSc in Electrical Engineering from ICAI in Spain and an MBA from University of Chicago.
