RW Advantage - Webinars

The following webinar is no longer available.

If you have any questions or comments please give us a call at 1.800.348.1831 or submit a form here and we will get back to you as soon as possible. Please visit our Educational Services page for more webinars.

Event Name:Basel III – Capital Conservation Buffer Creation
Date:Friday, January 20, 2017 11:00am CST
Presented By:BankersHub
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:

  • eligible retained income and
  • distributions and discretionary bonus payments during the quarter

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.