REGULAT O RY C O MPL I A NCE
Basel III Capital Planning Model
Capital modeling, analysis and planning at your fingertips —
and built-in functions that automatically comply with complex Basel III rules.
Q. Is your institution’s growth strategy Basel III compliant?
Q. Will you maintain adequate capital throughout the entire Basel III transition phase-in?
Q. If not, how much additional capital will you have to raise, and when?
Q. Does your capital plan allow for the new Capital Conservation Buffer phase-in levels?
Q. Will restrictions be imposed on shareholder dividends or bonuses paid to executives?
If your capital plan leaves any ANY of these critical questions unanswered, the QwickAnalytics Basel III
Capital Planning Tool is a must-have!
Save huge amounts of work and planning time. Our experts
have dissected the Basel III capital rules and built the
requirements into straightforward, easy-to-use models that you
can access with a few quick clicks.
•Measure your Basel III capital requirements going forward,
according to all new rules and phase-in dates
•Automatically calculate future limitations on dividends or
payouts caused by insufficient Capital Conservation
Buffer levels
• Eliminate rekeying and uploading of call report data
•Easily benefit from time-saving default assumptions and oneclick report access
•Quickly customize growth and income assumptions to
tailor reports to your needs
•Easily assume new capital raises of different types
(common, additional tier 1 or tier 2 equity or debt)
•Analyze multiple scenarios of growth, earnings and capital
raising to compare relative regulatory capital impacts
Basel III Summary Projections
Your Bank
Summary Regulatory Capital Calculations
HISTORICAL(a)
2013
2014
Capital Conservation Buffers & Maximum Payouts
2018
2019
$18,478
$18,457
$20,880
$20,700
Additional Tier 1 Capital
NA
NA
$5,604
$5,604
$5,604
$5,604
$5,604
$19,558
$24,346
$24,082
$24,061
$26,484
$26,304
$26,724
Total Risk-Based Capital
2015
PROJECTED(b)
2017
NA
Tier 2 Capital
Capital Conservation Buffer ("CCB") Reference Table
2016
NA
Total Tier 1 Capital
Your Bank
2015
Common Equity Tier 1 Capital
$21,120
$2,597
$2,770
$3,137
$3,451
$3,929
$7,321
$7,754
$22,155
$27,116
$27,219
$27,512
$30,413
$33,625
$34,478
(a) Calculated using the previous General risk-based regulatory capital rules
(b) Calculated using the new U.S. BASEL III revised regulatory capital rules
PROJECTED
2017
2016
2018
2019
Transitional Phase-in Rules for Capital Conservation Buffer & Payout Restrictions
Capital Surplus/(Deficit) Analysis
No Limitation on Payouts of Eligible Retained Income
NA
CCB > 0.625%
CCB > 1.25%
CCB > 1.875%
60% Maximum Payout
NA
0.625 ≥ CCB > 0.469
40% Maximum Payout
NA
0.469 ≥ CCB > 0.313
0.938
≥ CCB > 0.625
BASEL
III Calculation
20% Maximum Payout
NA
0.313 ≥ CCB > 0.156 Adequately
0.625 ≥ CCB
> 0.313
Capitalized
0% Maximum Payout
NA
CCB > 2.5%
1.25 ≥ CCB > 0.938
1.875 ≥ CCB > 1.406
CURRENT
03/31/2015
2.5 ≥ CCB > 1.875
1.406 ≥ CCB > 0.938
1.875 ≥ CCB
> 1.25
8.81%
7.76%
7.05%
7.06%
6.38%
5.88%
1.25 ≥ CCB
> 0.625
$13,040
$11,668
$10,414
$11,479
$9,803
$8,553
$4,010
2015
PROJECTED
2017
2016
2018
2019
Leverage Ratio
Tier 1 Capital Surplus/(Deficit):
0.938 ≥ CCB > 0.469
Well Capitalized
0.156 ≥ CCB
$10,330
$8,564
$7,002
$7,728
$5,677
7.19%
7.36%
6.69%
5.79%
5.22%
Adequately Capitalized
$6,835
$7,185
$6,035
$4,654
$2,851
$1,486
Well Capitalized
$1,751
$2,166
$514
($2,558)
($5,082)
($7,240)
0.313
≥ CCB Tier 1 (CET1)
0.469 ≥ CCB
Common
Equity
Ratio
0.625 ≥ CCB
BASEL III Calculation
4.84%
CET1 Capital Surplus/(Deficit):
Capital Conservation Buffer Calculation
Tier 1 Capital Ratio
PROJECTED
2017
9.60%
8.72%
Common Equity Tier 1 Ratio
7.36%
Tier
6.69%
5.22%
4.84%
Less: Adequately Capitalized Minimum
4.50%
4.50%Adequately Capitalized
4.50%
4.50%
$8,626
4.50%
$9,025
$7,498
$4,849
$2,505
$546
Capital Conservation Buffer
2.86%
2.19%Well Capitalized 1.29%
0.72%
$3,541
0.34%
$4,006
$1,977
($2,363)
($5,428)
($8,181)
Tier 1 Capital Ratio
9.60%
8.72%
7.34%
BASEL III Calculation
6.00%
6.00%
6.63%
6.13%
10.55%
6.00%
10.85%
9.97%
8.43%
8.48%
7.90%
2015
Less: Adequately Capitalized Minimum
2016
6.00%
Capital Conservation Buffer
Total Capital Ratio
BASEL III Calculation
9.39%
2018
1 Capital Surplus/(Deficit):
5.79%
Total Capital Ratio
Total Capital Surplus/(Deficit):
2019
6.00%
6.13%
3.60%
2.72%
1.34%
Adequately Capitalized
0.63%
0.13%
$6,474
$7,142
$5,428
$1,566
$1,893
($427)
9.97%Well Capitalized 8.43%
8.48%
$1,389
7.90%
$2,123
($93)
($5,646)
($6,040)
($9,153)
8.00%
8.00%
8.00%
8.00%
8.00%
Capital Conservation Buffer
2.85%
1.97%
0.43%
0.48%
(0.10%)
NA
1.97%
Well
Regulatory Capital Status
0.43%
0.48%
Well
Capitalized
(0.10%)
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Maximum Payout Calculation
Total Eligible Income (b)
6.63%
10.85%
Less: Adequately Capitalized Minimum
Qualifying Capital Conservation Buffer (a)
7.34%
$725
Capitalized
Adequately
Capitalized
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$586
$659
$797
$877
Maximum Payout Ratio
NA
100%
20%
20%
0%
Resulting Maximum Payouts ($000s)
NA
$659
$145
$159
$0
Adequately
Capitalized
Adequately
Capitalized
Under
Capitalized
Copyright © 1985 - 2015
4
(a) Limited to the minimum of the individual CCBs
(b) Last 12-months net income, net of any capital distribution not already reflected in net income
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Learn more about this time-saving planning and compliance tool
Basel III compliance can be difficult and complex. Simplify it with the QwickAnalytics Basel III Capital Planning Tool (part of the
QwickAnalytics Credit Stress Test). For more information or a sample report, go to www.qwickanalytics.com.
Analysis by
Monroe Financial
Partners
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