This course will provide an overview of the importance of capital adequacy, capital planning, and stress testing. The recent financial crisis highlighted the need for significant reform in the way that financial institutions were regulated, both domestically and internationally. This course will review the current framework for measuring capital adequacy and stress testing at the largest and most complex financial institutions.
By the end of the course, participants will be able to:
- Recognize the importance of capital adequacy to regulated financial institutions subject to Basel risk-based capital standards, Dodd-Frank stress testing (DFAST) standards, and Comprehensive Capital Analysis and Review (CCAR) requirements to ensure institutional and systemic safety and soundness
- Assess the effectiveness of existing capital planning processes and identify opportunities to better align these processes with regulatory requirements and best practices
- Identify the similarities and critical differences between capital adequacy, CCAR capital planning, and DFAST stress testing requirements
- Identify the data requirements and extract/transform/load processes from core systems to the required reporting output of CCAR
Suggested Prerequisites: None
Program Level: Foundational
Target Audience: Anyone who wants to learn about capital adequacy and stress testing, such as staff from compliance, middle office, legal, IT, operations, or HR, and regulators who work closely with various aspects of capital requirements.
Advance Preparation: None
Computers and Financial Calculators: Calculators
Recommended CPE Credits: 2.4
Instructor: David Oakes
Duration: 2 hours