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Meeting the Requirements for Capital Adequacy and Contingency

Date: April 2, 2013

Time: 3:00pm - 4:30pm

Location: Webinar


Capital adequacy requirements are changing. There is new regulatory emphasis on the responsibility of the board and senior management to determine capital adequacy based on the specific risk to the credit union. This is increasingly requested in examinations and credit unions have received positive comments if a capital stress test has been conducted prior to any potential request.

After the capital is stressed, the credit union should prepare a capital contingency plan to consider options for improving capital if the stress event occurs. It is always better to consider these options prior to the event (proactive) as opposed to after the event (reactive). This webinar will discuss an easy-to-follow methodology for completing the stress test, components of a capital contingency plan, and options for raising capital.

Continuing Education: Attendance verification for CE credits upon request

  • Guidelines for determining capital adequacy based on risk
  • An effective methodology to determine capital adequacy based on risk
  • Perils to avoid in determining capital adequacy
  • How capital changes impact strategic planning
  • A practical approach for developing a capital contingency plan
  • Importance of stressing capital
  • How to easily stress capital
  • How regulators view differing levels of capital
  • Pros and cons of capital-raising methods based on current successes and/or failures
    • Sample methodology for determining capital adequacy based on risk
    • Methodology for determining capital stress
    • Examples of realistic capital-raising alternatives

This informative session is designed for presidents, CFOs, chief lending officers, and board members who want to remain proactive in dealing with capital adequacy.