Bank Analysis School April 2025

Internal Use Only

How to Assess Capital Adequacy

Understand the bank’s capital levels

•What are they? •What changes have occurred since the prior examination? •Are levels in line with the bank’s risk profile?

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Internal Use Only

How to Assess Capital Adequacy

What Capital obligations does the bank have? What do Capital plans look like? What Capital stressors does the bank have? If the bank needs Capital, does it have access?

• Dividends

• Includes augmentation, dividend, and contingency

• Does the bank perform Capital stress testing?

• From who? How much? How long to get it?

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