Bank Analysis School September 2023 - Presentations & Resources

Internal Use Only

How to Assess Capital Adequacy • Dividends What Capital obligations does the bank have?

What do Capital plans look like?

• Includes augmentation, dividend, and contingency

• Does the bank perform Capital stress testing? What Capital stressors does the bank have? • From who? How much? How long to get it? If the bank needs Capital, does it have access?

Internal Use Only

Impact of COVID-19

Paycheck Protection Program (PPP) loans are excluded from risk-based capital but included in Tier 1 Leverage Ratio (unless the PPP loans are pledged to the FRB for a funding line).