Capital Ratio Computations For Depository Institutions

By: Paul J. Sanchez

Recorded Session

Duration
90 Minutes

Training Level
Intermediate to Advanced

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Transcript

($179) - Transcript (PDF Transcript of the Training)

Recorded Session

($239) - Downloadable Session

USB

($350) - USB

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Webinar Details

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

Senior management

Directors on the Board

Financial expert on the Board

Call Report Reviewers

Call Report Preparers

Newcomers to banking

Seasoned bankers

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

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?

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

SPEAKER PROFILE

Paul J. Sanchez, CPA, CBA, CFSA, CGMA conducts a small CPA practice in Port Washington, New York. He is also the owner of Professional Service Associates (PSA), a consulting and professional training and development business servicing corporate clients (auditors, controllers, etc.), CPA firms, professional associations and others. He was an assistant professor at Long Island University - C.W. Post Campus as well as an adjunct lecturer at City University of New York. Prior to starting PSA, he was the Vice President-Professional Development for the Audit Division of a regional bank and Director of Professional Practices and Vice President of a money-center bank, where he directed the professional practice development and training for internal auditors. He also was on the technical staff of the Auditing Standards and Examinations Divisions of the AICPA. He practiced public accounting in the New York office of Deloitte where he also was a firm recruiter and in-house professional development instructor. He was an owner and auditing and accounting seminar leader for the Person/Wolinsky CPA Review Courses, a company that prepared candidates to pass the Uniform CPA Examination. He is a frequent lecturer and seminar leader for accounting, auditing, banking, risk assessment and other professional presentations. He is the author of the textbook, “Accounting Basics for Community Financial Institutions” (Financial Managers Society, 2nd edition, Chicago, 2009) and the “Ideas an Analysis Letter: The Sanchez Take” (see www.sanchez-psa.com). As a contributing author, his chapter on ‘An Auditor’s Approach to Risk-Based Auditing: What to Audit and When,’ is included in the textbook, “Effective Auditing for Corporates: Key Developments in Practice and Procedures,” (Bloomsbury Information, Ltd, London, 2012).