Capital Ratio Computations For Depository Institutions

Capital ratios are essential metrics for financial institution management and for regulators. The capital ratios measure the liquidity issue of the institutions. The webinar discusses the scarcity of capital for banks and bank holding companies. It explains how financial institutions are highly leveraged and the owners have little “skin in the game.” A review of call report ratios will verify these notions

WHY SHOULD YOU ATTEND?

Senior management

Directors on the Board

Financial expert on the Board

Call Report Reviewers

Call Report Preparers

Newcomers to banking

Seasoned bankers

AREA COVERED

• Explanation of scarce capital situation in US banking
• Brief explanation of Basel III
• Review of actual and required Basel III ratios
• Computational process for computing the four key ratios
• Walkthrough of Schedule RC-R with focus on numerators and denominator leading to the four key ratios
• Explanation of important items that are part of the numerators and denominators
• The risk-weighting approach for assets and off-balance sheet items used in the denominator

LEARNING OBJECTIVES

• How scarce is capital at the nations largest banks?
• How many banks are well capitalized?
• What are the four key Basel III ratios?
• What are the components leading to:
• CET1 Capital Ratio
• Tier 1 Capital Ratio
• Total Capital Ratio
• Tier 1 Leverage Ratio
• What are the five descriptions for capitalization?
• What Call Report Schedule RC-R lines are used for the numerators and denominators for the four key ratios?
• What constitutes a walkthrough Schedule RC-R that leads to the four ratios?

WHO WILL BENEFIT?

• Controllers personnel
• Call Report preparers – new and experienced
• Call Report reviewers
• Regulators
• Internal auditors
• External auditors
• Risk managers
• Corporate counsel
• Senior management
• Directors