Bank Analysis School eBook

Overview

During the 2014 State ‐ Federal Supervisory Forum, FDIC Director of Risk Management Supervision Doreen Eberley expressed a desire to collaborate on training initiatives. In an effort to increase efficiency and consistency of training of FDIC and state bank examiners, CSBS worked with the FDIC to obtain electronic copies of its newly ‐ developed training content on regulatory capital. As discussed with and agreed upon by FDIC representatives, CSBS did not alter the content, but modified its format to increase learning effectiveness, distribution, access, and data tracking. Specifically, the content was broken down and organized into shorter video segments, and delivered through the CSBS content delivery platform. This training initiative’s objective is to help examiners gain an understanding of the new capital rule adopted by the federal banking agencies. This training is critical given the implementation of the new rule beginning in March 2015.

Please note that this training is for regulators only and should not be distributed to the industry.

Description

This Capital Training for Bank Examiners initiative consists of two online modules hyperlinked below:

1. The Numerator: Revised Definition of Capital & the Capital Conservation Buffer  Duration: 34 minutes

2. The Denominator: Standardized Approach to Risk Weighted Assets  Duration: 26 minutes

Each module also includes the following items:

 Four job aids (.pdf format)

o Conservation Buffer (3 pages) o Credit Risk Mitigation (7 pages) o Risk Weighted Assets for Equity Exposures (4 pages) o Investments in Capital Instruments of Unconsolidated Financial Institutions (7 pages)  Two calculators (.xls format) o Basel III Minority Interest o Simplified Supervisory Formula Approach Target audience The target audience for this training initiative consists primarily of community bank examiners. Please feel free to distribute this to all your examiners.