Capital Buffers & the Distance to the MDA Trigger
This lesson is part of the course
In this lesson
You calculate Northmere's bank-specific countercyclical buffer, stack the combined buffer requirement, measure the distance to the MDA trigger in four scenarios and look up how much of its profit the bank could still pay out.
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Lessons in this course
- Risk Weights by Exposure Class & Risk-Weighted Assets Locked
- Off-Balance-Sheet Items: Credit Conversion Factors Locked
- CET1, Tier 1 & Total Capital: Composition and Deductions Locked
- Capital Ratios vs the Minimums: CET1, Tier 1 & Total Locked
- Capital Buffers & the Distance to the MDA Trigger Locked
- The Leverage Ratio: Tier 1 ÷ Exposure Measure Locked
- Capital Planning: RWA Growth vs Retained Earnings over 3 Years Locked
- Stress Scenario: CET1 Depletion and the Trough Ratio (Chart) Locked