ICAAP: Wise Practice or Regulation Part 1: Capital: How Much is Enough? - Recorded Webinar
Who Should Attend
Bank failures. In the last few years, headlines have reported such calamities in the U.S.A., Europe, England, and Asia. So, where was their cushion – the capital – that was/is supposed to “protect” these financial institutions from such eventualities? And if the banks had a capital cushion, why wasn’t it enough? Why does it always fall to the taxpayer to settle the bill? Fortunately, we Canadians don’t need to worry. Our banks and credit unions DO have a solid capital cushion….or DO they?
Let’s consider our deposit insurance/guarantee environment. What would happen if a credit union were to fail? Taxpayers would be thumping the table asking tough questions and demanding accountability because ultimately, they could be left covering the shortfall.
How much capital is enough? Is it 2%, 3%, 5% over the regulatory requirement of risk-weighted assets or the leverage test? And, who decides – the...(See More)