Wednesday, November 10, 2021
2:00 – 3:30 pm (Eastern Time)
1:00 – 2:30 pm (Central Time)
12:00 – 1:30 pm (Mountain Time)
11:00 – 12:30 pm (Pacific Time)
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.
- The Common Equity Tier 1 Capital Ratios (CET1)
- The Tier 1 Capital Ratio
- The Total Capital Ratio
- The Leverage Ratio
Schedule RC-R (FFIEC 031/041 and 051) is explored in this bank accounting webinar.
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.
Paul J. Sanchez, CPA, CBA, CFSA conducts a CPA practice in Port Washington, New York. He is also the owner of Professional Service Associates (PSA), a consulting and professional training and development business servicing corporate clients (auditors, controllers, etc.), CPA firms, professional associations and others. He was an assistant professor at Long Island University – C.W. Post Campus as well as an adjunct lecturer at City University of New York. Prior to starting PSA, he was the Vice President-Professional Development for the Audit Division of a regional bank and Director of Professional Practices and Vice President of a money-center bank, where he directed the professional practice development and training for internal auditors.
1.5 CPE Credits & 1.8 AAP Credits