In an effort to help community banking organizations understand the potential impact on their capital ratios as a result of the implementation of the Basel III regulatory capital reforms and other changes required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the federal bank regulatory agencies have recently launched an online capital estimation tool, which is linked here:
The capital estimation tool is an online workbook which is conveniently tabbed for easy navigation and completion. Page 1 of the workbook provides detailed instructions on how to complete each tab of the capital estimation tool. Additionally, throughout the workbook, red triangles are located in specific cells and denote helpful comments that assist the user with locating and inputting the required data.
The capital estimation tool is primarily designed for use by community banking organizations and provides a general estimate of a banking organization’s leverage and risk-based capital ratios under the revised capital requirements. The capital estimation tool is not intended to provide results for any business or regulatory purpose, including regulatory reporting or compliance purposes. Estimations provided by the capital estimation tool should only be utilized to generally assess the impact of the revised capital requirements on a particular community banking organization and not as a replacement for its own capital analysis.