Bank Analysis School - September 2023

Internal Use Only

How to Assess Capital Adequacy

What are the

•Common stock, retained earnings, AOCI •Does the bank have a holding company? If so, which entity does the supporting?

components of the bank’s Capital?

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?