Capital Management

Calculate capital adequacy ratios to determine capital buffers necessary for the bank or financial institution, while optimising returns on capital based on capital allocation strategies

Type

Functional

Competency Area

Investment and Financial Management

Levels

Monitor returns on capital performance within capital adequacy requirements

Calculate forecasted capital buffers based on defined capital adequacy ratios

Calculate capital returns and other key indicators to report on performance

Analyse and report on the alignment between actual capital returns and expected capital returns, for improvement in capital allocation strategies

Prepare documentation for the communication of capital allocation strategies to various business units

Identify ways to improve organisational compliance with capital-related legislative and regulatory requirements

Manage capital allocation strategies, and optimising returns on capital

Evaluate options for allocating capital for investment and growth

Propose capital allocation strategies to achieve returns aligned to capital objectives

Determine capital adequacy ratios for the organisation based on evaluations of risk exposure and capital buffers required

Adjust capital allocation strategies based on capital returns performance

Articulate rationale underlying capital allocation strategies to various business units

Perform RWA calculations for credit risk, market risk and operational risk, to determine capital adequacy ratios for sizing capital buffers

Set limits for and improve capital efficiency using regulatory capital and economic capital models

Optimise capital by recommending changes to product portfolios, pricing strategies, client retention and collateralisation, to ensure continuous capital management

Manage balance sheet of capital reserves

Define capital management strategies for the organisation

Collaborate with business units to manage balance sheet on capital reserves, based on business strategies Set and derive capital return goals based on the organisation’s strategic goals

Define capital management policies in collaboration with other business units

Identify levels of risk and risk appetite within the organisation and the adequacy of capital buffers required

Review and approve capital allocation strategies

Determine adjustments to capital allocation based on performance of returns and overall capital management strategies

Determine investment strategies for capital growth

Communicate rationale underlying target capital levels to stakeholders, to reflect to them the risk of their businesses