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Banking Essentials - Part I

This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.

Greenwashing

Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.

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Keep track of learning progress with our comprehensive data

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Engage with our video hotspots and knowledge check-ins

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Tackling the Cost of Living Crisis

In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.

CSR and Sustainability in Financial Services

In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.

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Featured Pathways

More pathways

Banking Essentials - Part I

This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.

Greenwashing

Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.

More pathways

Book a demo

Pricing

Ready to get started?

Plans & Membership

Our Platform

Expert led content

+1,000 expert presented, on-demand video modules

Learning analytics

Keep track of learning progress with our comprehensive data

Interactive learning

Engage with our video hotspots and knowledge check-ins

Testing & certification

Gain CPD / CPE credits and professional certification

Managed learning

Build, scale and manage your organisation’s learning

Integrations

Connect Finance Unlocked to your current platform

Featured Content

More featured content

Tackling the Cost of Living Crisis

In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.

CSR and Sustainability in Financial Services

In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.

More featured content

Book a demo

Pricing

Ready to get started?

Book a demo

Pricing

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Basel II

Basel II

Glossary
Banking

Basel II

Basel II set out in 2004 three broad areas or ‘pillars’ of risk supervision and control: Pillar 1 – sector-wide capital standards (i.e. the 8% of Basel I) set by regulators. Pillar 2 – supervisory review: supervisors reviewed banks’ Pillar 1 calculations and adjusted as they deemed necessary. Pillar 3 – higher levels of transparency and disclosure to create market discipline to supplement the work of supervisors under Pillar 2. Basel II defined ‘operational risk’ (“the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events”), and distinguished this from the riskiness of an asset measured by simple weightings. Basel II introduced the idea of the riskiness of assets and how much a bank might lose if assets went bad. Banks were given a choice in how to calculate their risk-weighted assets: the ‘Standardised Approach’ – probability of default and loss given default set by regulators using standard metrics; the Foundation Internal Risk-Based Approach – banks use their own data to track PD but regulators provide standardised LGD metrics; or the ‘Advanced Internal Risk-Based Approach’ – banks use their own data for PD and LGD.

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