FDIC Releases Basel III Capital Estimation Tool
By Carl Chatto, Audit Principal
On November 20, 2013, the FDIC released a “Regulatory Capital Estimation Tool for Community Banks” as a downloadable spreadsheet. This tool, which comes with a number of disclaimers, allows banks to input various factors and assumptions about their current financial condition to project their capital ratios under Basel III.
The spreadsheet can be found on the FDIC website. (note: link opens as an excel file)
If you enter your bank’s charter number into the spreadsheet (while you are connected to the internet), the spreadsheet will populate your bank’s September 30, 2013 call report information to help with the data input. The spreadsheet also shows the effect of various capital requirements that phase in over time based on your current capital situation. The spreadsheet is fairly easy to use and provides useful output for review, even given the FDIC’s disclaimers.
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