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Coursera

Capital Adequacy Ratio for Banking

EDUCBA via Coursera

Overview

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Master Basel I Capital Adequacy and CAR calculations with real-world banking case studies. Learn how global banks manage risk, capital, and regulatory compliance. This course provides a practical, step-by-step approach to understanding the Basel I framework and its role in banking stability. You will explore core concepts such as Tier 1 and Tier 2 capital, risk-weighted assets, and capital adequacy ratio (CAR), while applying them to real-world examples from leading banks like DBS, JPMorgan, and SWED Bank. Through structured lessons and case-based learning, you will develop the ability to calculate CAR, analyze capital structures, and evaluate financial resilience. The course also introduces key insights into Basel III evolution, helping you connect foundational knowledge with modern regulatory practices. By the end of this course, learners will confidently interpret capital adequacy metrics, apply risk management principles, and make informed financial decisions in banking and finance roles.

Syllabus

  • Foundations of Basel I Capital Planning
    • Understand Basel I principles, capital structure, credit exposure, and risk-weighted assets to build a strong foundation in capital adequacy.
  • Practical CAR Calculations – DBS & Wall Street
    • Apply CAR calculations using real-world examples from DBS and JPMorgan, including provisions and capital adjustments.
  • Risk Management & Capital Requirements
    • Explore risk management frameworks, capital requirements, and equity composition for effective banking analysis.
  • Capital Adequacy Analysis & Strategy
    • Analyze capital ratios, financial stability drivers, and strategic planning tools for maintaining regulatory compliance.
  • Advanced Applications & Basel Evolution
    • Examine advanced case studies, capital surplus, and transition insights from Basel I to Basel III frameworks.

Taught by

EDUCBA

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