Risk-Based Capital Adequacy Assessment for Community Banks: A 1-2-3 Basel Comparison and Case Study

Presenter: James L. Glueck, CFA

Duration: 1 hour

Price: $249 / $199 for Affiliation Members

The recent financial crisis has underscored dramatically the importance of robust capital adequacy assessment and planning- banks with stronger capital positions are less likely to fail under extreme market conditions. To support a strong capital position, community banks are best served using the Basel II Standardized Approach- designed especially for community banks to estimate risk-based capital-in contrast to Basel I methods- the general risk-based capital rules.

In this webinar you will learn what the differences are between Basel I and II as illustrated by a case study. We’ll show you a comparative calculation of capital levels and risk-weighted assets under both approaches.

You’ll also learn:

• Why it’s so important to ensure adequate capital resources for the long term
• The differences between Basel I and II and how Basel II is better suited to community banks
• Which are the key drivers of credit and operational risk from a risk-based management perspective
• Why stress testing and what–if analysis are critical
• What lies ahead- what are the implications of Basel III’s expanded liquidity and capital requirements (now in development) for community banks?

BIO: James L. Glueck, CFA

James L. Glueck is a Senior Consultant in the Finance, Risk & Compliance practice at Capco, specializing in asset liability management, ALCO, interest rate risk measurement and mitigation, funds and liquidity management, margin management, balance sheet planning, and regulatory compliance. In addition, James has specialized experience in applying Basel II approaches to measure credit, market and operational risk as well as assessing the adequacy of risk-based capital requirements.

James has more than 12 years of experience incorporating a wide-ranging internal and external consultative focus while working with a variety of financial institutions. Prior to joining Capco, James directed the ALM and liquidity management functions for a number of larger and smaller commercial and retail banking organizations, a larger consumer finance company, as well as serving as a financial analyst for a super regional commercial bank. In addition, James served as director of an A/L consulting and advisory practice serving community and regional banks in the Midwest, Northeast, Mid-Atlantic, and Southeast regions.

James received his Bachelor’s degree in Economics from Franklin & Marshall College and his MBA in Finance from La Salle University. He is a Chartered Financial Analyst®, a member of the CFA Institute, and a candidate for the Professional Risk Manager (PRM) designation offered by the Professional Risk Management International Association (PRMIA).

Continuing Professional Education Credit

Delivery Method: Group Internet-based       CPE Credits: 1
Program Level: Overview       Prerequisites: None       Advance Preparation: None

Sheshunoff Consulting + Solutions is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Web site: www.nasbatools.com.

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