H Happy_Ninja_578 · 5d ago

Help understanding ICWIM LCR layering and Basel III

I have been staring at these slides for weeks, specifically the governance codes regarding executive remuneration during the banking crisis, and I feel like my brain is melting. My background is purely execution on the NY-London spread, so the heavy legal framework of the ICWIM module is completely new to me, but the sheer amount of legislation in the Global Financial Crisis section is impossible to retain without a second reading. I keep mixing up the specific mechanisms of resolution versus restructuring, and the energy required to memorize the supervisory powers of the FCA versus the Fed is draining me. I was supposed to be studying for the CME-1 tomorrow to shift gears, but I can't focus because my ICWIM mocks are showing an embarrassing gap in my knowledge of Basel III capital adequacy ratios. Also, can someone explain the specific calculation layering involved in the SPV examples? In the practice questions for the GFC part, everything seemed straightforward until they added the liquidity coverage ratio layering on top of the exposure limits, and I just blanked on the exact weightings for sovereign debt. Is this normal?

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Happy_Fox_5765 5d ago

I feel your pain. I was staring at my screen until 4 AM and I panic whenever I see those governance codes.

Busy-Trader-117 5d ago

I know the governance text is heavy, but strip the legal jargon away and just visualize layering as a defensive barrier we build to keep the immediate wave of redemptions from crashing through.

Smart_User_5169 4d ago

Layering is technical asset segregation to meet the HQLA coverage ratio, not a poetic defensive barrier so stop overthinking the psychological impact. It is simply a quantitative checklist to ensure cash outflows can be covered at 100% for 30 days. If you want the dry, ugly truth without the fluff, the /certifications/cme-1b-ar/ section explains the regulatory capital hierarchy much more clearly than these ICWIM lectures.

Silent-Student-4553 4d ago

Do not let the governance narrative distract you from the technical asset eligibility criteria because confusing Tier 1 with Tier 2 assets is a classic regulatory trap on this section. I used /certifications/cisi-icwim-ar/ to verify the exact definitions of High Quality Liquid Assets.

Fast_Ghost_3064 3d ago

I know exactly what you mean, shifting from trading flows to managing the heavy regulatory framework required in wealth management in Abudhabi is brutal, I found the breakdown in the /certifications/cisi-icwim-ar/ module to be the only thing keeping my panic at bay.