Fundamentals of Banking Supervision & Regulation in Europe

This programme provides a structured and in depth introduction to banking regulation in the European Union and prudential supervision within the framework of the Single Supervisory Mechanism (SSM). It establishes the conceptual foundations needed to understand the regulatory environment and the supervisory activities that shape the system of banking supervision in Europe.

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The course offers participants a comprehensive overview of the regulatory framework, the supervisory architecture, and the practical assessment of risks and capital adequacy. It then progresses through the key risk categories and supervisory assessment areas (including business model assessment, internal governance, risk to capital and risk to liquidity) reflecting the core components of the Supervisory Review and Evaluation Process (SREP) within the context of the broader regulatory framework in the European Union.

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The curriculum is designed and delivered in a coherent and integrated manner, interlinking the essential building blocks of regulatory concepts and supervisory processes. By the end of the programme, participants will have the knowledge base and conceptual clarity required to navigate the regulatory and prudential supervision landscape.

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The course is open to the general public, and introduces students to key regulatory and supervisory concepts and methods across a variety of financial and non-financial risks. It is designed to be fully accessible online and will be delivered in English in evening sessions, allowing broad participation.

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By the end of the programme, participants will be able to:

• Develop a broad and integrated view of prudential supervision, connecting regulatory foundations with supervisory methodologies and risk assessments.
• Understand the structure and functioning of the SSM and its role within the European system of prudential supervision.
• Integrate core principles guiding prudential supervision to form a coherent view of a bank’s risk profile, capital adequacy, business model as well as internal governance set-up.
• Assess key risk categories relevant to the supervisory process, including credit risk, market risk, operational risk, governance, business model, interest rate risk in the banking book (IRRBB) and liquidity risk.
• Understand the fundamentals and interlinkages between Pillar 1 capital requirements, Pillar 2 capital requirements (P2R) and Pillar 2 Guidance (P2G).
• Understand solvency ratios, capital metrics, liquidity requirements and the leverage ratio.
• Explore topics that are gaining importance, such as ESG risks, digital transformation of banking activities, as well as IT & cyber risks.