Capital Adequacy Ratio for Banking

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Capital Adequacy Ratio for Banking

Instructor: EDUCBA

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5 modules

Gain insight into a topic and learn the fundamentals.

9 hours to complete

Flexible schedule

Learn at your own pace

5 modules

Gain insight into a topic and learn the fundamentals.

9 hours to complete

Flexible schedule

Learn at your own pace

What you'll learn

Calculate Capital Adequacy Ratio (CAR) using Basel I capital and risk-weighted asset frameworks.
Analyze Tier 1, Tier 2 capital structures and their impact on banking resilience.
Evaluate regulatory capital requirements and apply risk management principles in banking.

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There are 5 modules in this course

Master Basel I Capital Adequacy and CAR calculations with real-world banking case studies.

Learn how global banks manage risk, capital, and regulatory compliance. This course provides a practical, step-by-step approach to understanding the Basel I framework and its role in banking stability. You will explore core concepts such as Tier 1 and Tier 2 capital, risk-weighted assets, and capital adequacy ratio (CAR), while applying them to real-world examples from leading banks like DBS, JPMorgan, and SWED Bank. Through structured lessons and case-based learning, you will develop the ability to calculate CAR, analyze capital structures, and evaluate financial resilience. The course also introduces key insights into Basel III evolution, helping you connect foundational knowledge with modern regulatory practices. By the end of this course, learners will confidently interpret capital adequacy metrics, apply risk management principles, and make informed financial decisions in banking and finance roles.

Understand Basel I principles, capital structure, credit exposure, and risk-weighted assets to build a strong foundation in capital adequacy.

What's included

7 videos1 assignment

7 videosTotal 63 minutes

Introduction to Bank Capital Planning under Basel I11 minutes
Introduction to Bank Capital Planning under Basel I Continue10 minutes
Credit Exposures8 minutes
Credit Exposures Terms with Examples9 minutes
Total Capital Including Tier 8 minutes
Calculation of Risk Weighted Exposures8 minutes
CAR - Final Calculation8 minutes

1 assignmentTotal 30 minutes

Foundations of Basel I Capital Planning30 minutes

Apply CAR calculations using real-world examples from DBS and JPMorgan, including provisions and capital adjustments.

What's included

8 videos1 assignment

8 videosTotal 62 minutes

DBS Bank Car Calculation12 minutes
DBS Bank Car Calculation Continue7 minutes
More on DBS Bank Car Calculation6 minutes
Provisions Eligible as Tier 2 Capital7 minutes
Wall Street - CAR10 minutes
Wall Street - JPM CAR6 minutes
Wall Street - JPM CAR Continue7 minutes
More on Wall Street - JPM CAR7 minutes

1 assignmentTotal 30 minutes

Practical CAR Calculations – DBS & Wall Street30 minutes

Explore risk management frameworks, capital requirements, and equity composition for effective banking analysis.

What's included

8 videos1 assignment

8 videosTotal 65 minutes

Risk Management Objective and Guidelines11 minutes
CSR Planning of Scandinavia Enscheda Banked8 minutes
Capital Requirement8 minutes
Capital Ratio7 minutes
CAR Planning RBS Bank8 minutes
Composting of Capital7 minutes
Composting of Shareholders Equity8 minutes
Equity Capital Calculation8 minutes

1 assignmentTotal 30 minutes

Risk Management & Capital Requirements30 minutes

Analyze capital ratios, financial stability drivers, and strategic planning tools for maintaining regulatory compliance.

What's included

8 videos1 assignment

Examine advanced case studies, capital surplus, and transition insights from Basel I to Basel III frameworks.

What's included

6 videos1 assignment

Instructor

EDUCBA

1,591 Courses326,930 learners

Offered by

EDUCBA

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