UNDERSTANDING FINANCIAL CAPITAL

Service Description

Day 1: Understanding Financial Capital Basics • Introduction to Financial Capital: Defining financial capital and its significance for financial institutions. • Components of Financial Capital: Exploring equity, debt, and regulatory capital requirements. • Capital Adequacy Ratios: Understanding Basel III and its impact on capital adequacy ratios. • Link to Liquidity: Connecting capital reserves with liquidity buffers and stress testing. Day 2: Financial Capital and Financing Strategies • Capital Structure Optimization: Balancing equity and debt for efficient financing. • Cost of Capital: Evaluating the cost implications of various capital sources. • Impact on Financing Decisions: Analysing how capital structure affects borrowing costs and credit ratings. • Relationship with Liquidity: Considering the relationship between capital structure and liquidity risk. Day 3: Regulatory Reporting and Capital Requirements • Regulatory Capital Frameworks: Delving into Basel III and its capital requirement calculations. • Regulatory Reporting: Understanding the reporting obligations for capital adequacy. • Capital Planning and Stress Testing: Exploring regulatory stress tests and their role in capital planning. • Alignment with Risk Management: Connecting capital requirements with risk management strategies. Day 4: Risk Management and Operational Considerations • Capital and Risk Management: Linking capital adequacy to various risk categories (credit, market, operational, etc.). • Economic Capital vs. Regulatory Capital: Understanding the distinction between economic and regulatory capital. • Operational Resilience: Discussing how capital buffers contribute to operational resilience. • Operational Efficiency: Examining how optimal capital allocation enhances operational efficiency. Day 5: Capital Compliance and Future Trends • Capital Compliance Strategies: Ensuring ongoing adherence to regulatory capital requirements. • Changing Regulatory Landscape: Exploring evolving regulatory standards and their impact on capital. • Technological Innovation: Assessing how technology is transforming capital management and reporting. • Role of Compliance: Examining compliance's role in maintaining capital adequacy.