AFB Practice Workshop: How to Manage Real Estate Exposures Under Basel 3.1

Under the PRA’s Basel 3.1 framework (as set out in PS 1/26), banks must implement more granular, LTV‑based risk‑weighting for residential real estate exposures.  This reflects a more refined process for classifying and reporting real‑estate exposure.

This workshop, in partnership with BDO, will support members in interpreting the PRA’s expectations for the following: applying LTV‑driven risk weights, understanding when the loan‑splitting approach is required, and ensuring valuations and other monitoring processes remain sufficiently current under the revised rules.

The session will also provide practical guidance on how to assess and adjust mortgage portfolios, ensuring they remain aligned with the Basel 3.1 credit‑risk standardised approach and the operational readiness expectations highlighted by the PRA in PS 1/26.

Why attend?

The workshop will explore:

• Practical implementation of the Basel 3.1 standards and expectations on risk weighting of residential real estate exposures
• Clarifications on definitions and classification of regulatory, residential, and commercial real estate exposures and whether they are materially or not materially dependent on cash flows
• The practical impact on regulatory reporting processes and capital management frameworks
• Group case studies with feedback from BDO experts

Who should attend?

The session will be of interest to senior members of Risk, Compliance and Regulatory Reporting teams at AFB member banks with responsibility for ensuring the firm is compliant with Basel 3.1.

Speakers

Aiza Marie-Sace, Associate Director, Prudential and Authorisations

Aiza has extensive background as a banker, including holding a Chief Risk Officer role for an international bank. At BDO, Aiza has managed various many prudential regulations advisory reviews, including internal audit and s166 Skilled Persons. Her expertise focusses on capital, market, liquidity, recovery and resolution, solvent exit, resolvability assessment framework, stress testing, treasury, wholesale and retail banking, and regulatory reporting. Prior to joining BDO, she had extensive experience in banking and risk management for more than 10 years. She has provided significant contributions in embedding a rigorous risk culture in a firm.

Oivind Andresen, Partner, Prudential and Authorisations

Oivind is a Partner in the Financial Services practice where he specialises in providing prudential advisory to banks. He brings decades of regulatory experience including eight years at Barclays where he implemented the Basel 2 and 3 for the corporate and investment bank division. Oivind joined BDO in 2014 and has played a pivotal part in building up the prudential function and expanded BDO’s capabilities as prudential subject matter experts. Oivind has broad experience of prudential regulation including regulatory reporting, capital adequacy calculations, IRB models, reporting and policy considerations for all risk types including credit risk, concentration risk market risk, and operational risk. He has led a number of regulatory reporting, Basel 3.1 and ICAAP Skilled Persons reviews, including UK subsidiaries of overseas banks.

Hallen Wang, Manager, Prudential and Authorisations

Hallen is a Manager in BDO’s Prudential Regulations and Authorisations Team, within the Financial Services Advisory stream. She is specialised in regulatory reporting assurance, ICAAP, ILAAP, Recovery Plans, Resolution Framework, and other prudential regulations. Before joining BDO, Hallen was a Regulatory Reporting Accountant for 8 years, responsible for reporting to and liaising with the PRA, FCA and BoE. After joining BDO, Hallen has been involved in providing prudential assurance and advisory services to Financial Services clients across large and medium sized banking and other financial services firms.

Logistics

Fee:           £275 + VAT

Format:     In-person at BDO, 55 Baker Street, London W1U 7EU

Date:         Wednesday 20 May 2026

Time:         15:30 – 17:30 (arrivals & networking from 15:00)

Places:       Maximum of 30 participants

If you would like to submit a question or have any specific areas that you would like the session to address, please send them to AFB at secretariat@foreignbanks.org.uk. You will receive details on how to join this session a week before the event.

You will only be deemed to have attended (for CPD points) if you have made yourself known at registration and attend 50% or more of the session.

Please note that the cost charged for this event is payable to AFB. BDO is not charging AFB or members for hosting this event.  The delegate fees received for this workshop are invested in the ongoing running and administration of AFB.