A Sound Capital Planning Process: Fundamental Elements

An important lesson from the financial crisis concerned the need for banking organisations (“banks”) to strengthen their capital planning processes. Some of the observed weaknesses reflected banks’ processes that were not sufficiently comprehensive, appropriately forward-looking or adequately formalised. As a result, some management teams underestimated the risks inherent in their banks’ business strategies and, in turn, misjudged capital needs.
(Texto en inglés)