Capital Planning and Capital Contingency

Capital Planning Assistance

Develop bank-specific capital adequacy, stress tests, and contingency plans

Young & Associates, Inc. offers guidance in the process of determining capital adequacy based on the bank-specific risks and developing capital contingency plans to ensure the required level of capital is maintained through any realistic stress event.

Periodic reviews of the minimum capital requirements and stress tests can provide valuable insights regarding not only the bank’s ability to navigate through economic downturns, but also to estimate the amount of capital that can be freed up to support additional growth and earnings in the future. Many banks can justify lower capital requirements once they customize capital adequacy calculations to their specific risk profiles.

Streamline your planning and stress testing with Young & Associate’s Capital Planning System

Comprehensive tool that allows you to assess capital adequacy in relation to your bank’s overall risk and develop a customized capital plan for maintaining appropriate capital levels in all economic environments. The Capital Planning System has been field-tested by Young & Associates, Inc.’s management consultants and has passed the regulatory scrutiny.

Allows you to:

  • Develop a base case scenario in which minimum capital adequacy standards are established.
  • Identify and evaluate risk for your bank. Parameters in this analysis have been field-tested in our work with banks over the years and closely resemble adequacy standards established in consent orders.
  • Stress test capital by loan classification (as recommended by the FDIC and OCC)
  • Perform contingency planning for stressed events. All assumptions are stressed to determine the amount of capital needed and possibilities for increasing capital are examined.
  • Generate your Capital Plan in as little as 1 day! Data from the Excel spreadsheets can be easily transferred directly into a Word document that can be customized to fit the unique circumstances at your bank. Sample language and suggestions for changing the narrative are provided.