Having a capital plan is the base for your Institution’s overall strategy. A comprehensive capital plan forms the foundation for the Institution’s growth strategies. Implementing a capital plan is crucial given regulatory requirements. Developing a capital plan is not a simple process. It takes a high degree of expertise and an understanding of the impact of how the inter-relationships within the Institution effect capital.
- Does your Capital Plan show your current balance sheet in compliance as the new regulations are implemented?
- As your business plan unfolds, are you in compliance with the new regulations?
- Are there stress tests incorporated in your Capital Plan?
- Does your Capital Plan contain a contingency capital plan?
- Does your Capital Plan document your capital goals and how you arrived at those goals?
FARIN has the experience and tools to successfully lead you through the capital planning process. Over the years, FARIN has assisted both newly chartered and seasoned Institutions with reviewing and developing capital plans. The process of capital planning is closely intertwined with asset/liability management. By partnering with FARIN, your Institution will benefit from years of ALM consulting and expertise in developing an integrated capital plan. FARIN is ready to help you build your capital plan in one of two ways:
- Consultative Approach – Let us work with your management team to assess your strategic plans and risk systems to build an effective capital plan that meets regulatory expectations.
- Do It Yourself Approach – Take advantage of our various educational offerings. Banks can use our 3 part capital planning webinar, see below. Included with the webinars you will receive FARIN’s Capital Speedboat interactive capital planning model. For credit unions we are developing a webinar series and an interactive capital planning model.
Credit Union Resources
- Final Basel III Banking Regs
- Comptroller Curry says Final Rule Strengthens Capital While Minimizing Burden on Community Banks & Thrifts
- Guidance for Evaluating Capital Planning and Adequacy
- NCUA Prompt Corrective Action—Risk-Based Capital
- NCUA Proposed Regulations – Information on Submitting a Comment