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|Event Name:||Basel III – Capital Conservation Buffer Creation|
|Date:||Friday, January 20, 2017 11:00am CST|
|Panelist(s) Info:||Rhea Hemish CPA Partner Eide Bailly LLP|
|Credits:||1.2 AAP Credits, 1.0 CPE Credit|
This session will focus on the capital buffer for depository institutions.
It will provide “hands on” examples on how to calculate the institution-specific capital buffer needed to avoid limits on a depository institution’s payment of dividends and discretionary bonuses. That buffer will eventually be 2.5% and will be phased in starting on January 1, 2016.
The session will explain in broad terms what Basel III is trying to do with respect to the capital buffer, and will show how it is done on Call Report Schedule RC-R.
It will also explain exactly what is the capital buffer and how it is designed to limit distributions (e.g. dividends and discretionary bonus payments).
The Basel III minimum capital requirements for CET1, Tier 1 Capital and Total Capital is reviewed. Also how to calculate the institution specific capital buffer is illustrated along with how the capital buffer is phased in from 1/1/16 to 1/1/19 and thereafter.
In addition the session will explain the meaning of the following items that must be reported on Schedule RC-R:
How these two key items are computed are also reviewed.
This completely new area will be an excellent introduction to new Basel III concepts, particularly the new capital conservation requirement.