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 Capital Ratios: Computational Issues for

Depository Institutions (CAPRAT)

 

This course provides auditors and others with information about capital ratios of depository institutions.

 

It describes and analyzes the ratios favored by regulators.

 

The course explains how the C in CAMELS uses the capital ratios to analyze capital adequacy.

 

CAMELS represents the regulators concerns in the following areas when examining financial institutions:

 

 

-

 Capital Adequacy

(C)

 

-

Assets

(A)

 

-

Management

(M)

 

-

Earnings

(E)

 

-

Liquidity

(L)

 

-

Risk Sensitivity

(S)

 

It shows how the risk-based capital approach is used to generate the carefully watched capital ratios. 

 

It covers definitions like Core Capital, Supplemental Capital, and Total Capital.

 

It provides examples of calculations of capital ratios and the categorization of risk-weighting for important risk-weighted assts and off-balance-sheet items..

 

It focuses on and analyzes Basel III capital requirements with examples of how to approach the calculation of the:

-          Common Equity Tier 1 Capital (CET1) Ratio

-          Tier - Capital Ratio

-          Total Capital Ratio

-          Risk-Based Capital Ratio

 

 

This course is excellent for personnel in the controllers, treasury and auditing functions.

 

 

Category: Banking Accounting