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