New Regulatory Capital Rules &
Determining Capital Adequacy
Monday, November 18, 2019
3:00 pm – 4:30 pm Eastern
Congress has created a conflict for bank regulators. President Trump signed the Economic Growth, Regulatory Relief and Consumer Protection Act on May 24, 2018. This law requires bank regulators to establish a Community Bank Leverage Ratio for banks under $10 billion in assets, that would provide a well-capitalized bank designation for banks that meet this ratio, regardless of risk-based capital. The FDIC has set the Community Bank Leverage Ratio at 9.0%. The conflict is that regulators believe that one size does not fit all – one capital level does not fit all banks. The amount of capital to determine capital adequacy depends on the risk within the bank. This webinar will explain and make sense of this conflict, and then use the information to benefit your bank. It will also address balancing the impression from regulators that banks need more capital, with the importance of increasing shareholder value.
- Understand the rationale of Congress requiring a Community Bank Leverage Ratio (CBLR)
- Determine whether your bank should opt-in or opt-out, and the advantages of each
- Evaluate the potential implications if your bank does not meet this ratio
- Know when it’s in the bank’s best interest to not meet the CBLR
- Project future capital ratios
- Analyze the role capital plays in shareholder value
- Understand the inverse relationship between capital and return on equity
- Appreciate the importance of integrating capital planning with strategic planning
- Review the regulatory model for stressing capital
- Employ a practical approach for developing a capital contingency plan
• Example of methodologies to:
o Forecast your Community Bank Leverage Ratio
o Determine shareholder value based on return on equity
o Stress test capital
• Employee training log
• Interactive quiz
Who Should Attend?
This informative session is designed for CEOs, other senior officers, and board members.
Gary J. Young, Young & Associates, Inc.
Gary J. Young is founder of Young & Associates, Inc. During 40 years in consulting and 50 years in the industry, he has assisted hundreds of financial institutions from coast-to-coast with improving shareholder value and profit, establishing effective strategic plans, management assessments, regulatory concerns, budgeting, asset/liability management, expansion planning, and mergers and acquisitions.
Gary is a popular speaker due to his practical and valuable insight and has conducted seminars throughout the United States and in Europe. Gary is on the board of a community bank, manages a bank investment fund, and is a co-founder of Capital Market Securities, Inc., which assists with mergers and acquisitions.
Attendance verification for CE credits provided upon request.
Webinar Sponsored by Financial Education & Development
If you are having issues with registering online, please contact CBAO's Education & Training Coordinator, Lianne Simeone, (614) 610-1877.
|Live Webinar: Register for the live event and get five days access to the On Demand Playback. You’ll have an opportunity to ask questions during the presentation and be free to review the content for the next 5 (business) days Registration also includes links to presenter materials, handouts, and pdfs.
Recorded Webinar + Free Digital Download: Can’t attend the live webinar? This option provides a recording of the live event, including audio, visuals, and handouts. We even provide the presenter’s email address for follow-up questions. You will receive an email with the recorded webinar link, which can be viewed anytime 24/7, beginning 6 business days after the webinar. You will also receive instruction on how to download a free digital copy of the webinar to your PC, which you may keep and use indefinitely.
Live Webinar: Register for the live event and get five days access to the On Demand Playback. You’ll have an opportunity to ask questions during the presentation and be free to review the content for the next 5 (business) days Registration also includes links to presenter materials, handouts, and pdfs.
Additional Hookups: Registering another banker from a different location
Live Webinar + On-Demand Link : Both live webinar & recorded webinar + free digital download