BankerCollege

Background

Arguably the most important Call Report Schedule and probably the most difficult to complete is Schedule RC-R. That Schedule is designed to calculate the four important key ratios that show whether the financial institution is in compliance with the four minimum capital ratios.

1. The Common Equity Tier 1 Capital Ratios (CET1)
2. The Tier 1 Capital Ratio
3. The Total Capital Ratio
4. The Leverage Ratio

Schedule RC-R (FFIEC 031/041 and 051) is explored in this bank accounting webinar.

Webinar Objectives

The OBS items added to the total GAAP assets include: 

• Financial standby letters of credit (converted to “what if” assets) 
• Unused commitments less than 1 year to maturity 
• Unused commitments more than 1 year to maturity 
• OBS derivatives (converted to “what if” assets) 
• Derivatives centrally cleared (converted to “what if” assets) 

The capital calculated in Part I divided by the total risk weighted assets after adding the “what if” assets that OBS items generates 3 of the 4 key ratios: 

• CET1 Capital Ratio 
• Tier 1 Capital Ratio 
• Total Capital Ratio 

Attendees will also see:

• How the capital for leverage purposes is calculated and divided by the assets for leverage purposes, resulting in the leverage ratio;
• How Community Banks can reduce excess paperwork (i.e. eliminate the difficult and intricate Part II of RC-R). 

This accounting webinar will give attendees a thorough understanding of the most important Schedule – the regulatory capital Schedule RC-R.