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9th Annual Best Practices for Capital Management and CCAR

Benchmarking strategies to optimize capital planning and management in the changing economic and regulatory environment.

September 13-14, 2021
Online Conference

What our delegates think of us:

An Interview with Sudhir Kumar, Head of Capital Management Oversight, at US Bank

Ahead of the 9th Annual Best Practices for Capital Management and CCAR Conference, we spoke with Sudhir Kumar, Head of Capital Management Oversight, at US Bank. Sudhir Kumar has over 17 years of experience, primarily in the banking and financial services sector, with focus on Basel capital adequacy, stress testing and capital planning, risk advisory, governance and reporting, risk data governance and platform integration, controls and attestations, independent review and testing. He has worked for large banking institutions as well as premier consulting firms, and provided range of advisory services across diverse set of banking and financial institutions, risk oversight and credible challenge of areas requiring extensive understanding of regulatory requirements, industry trends and risk management practices. 

*The opinions expressed below are his own and do not necessarily reflect those of U.S. Bank.

What do you feel has been the biggest impact of the pandemic on capital management strategies?

Significant focus on real time monitoring of capital levels, frequent sensitivity / scenario analyses assessment of pandemic risks and portfolio impacts of rapidly evolving pandemic conditions, credit quality deterioration, liquidity implications and capital markets volatility, and uncertainties on capital adequacy and capital planning in the near term; Agility and collaboration were essential along with ensuring clear escalation mechanism, senior management and board engagement, and contingency options available to restore capital.  Finally, evaluating impact of significant monetary and fiscal stimulus measures on capital management strategies including low interest rate environment, interim rule changes, CECL and stimulus impacts on capital as well as regulatory restrictions on payouts.

What do you feel is the biggest impact of the new stress capital buffer regime?

We have not necessarily seen the full impact yet given Federal Reserve delayed the implementation of capital payouts based on stress capital buffer regime due to pandemic conditions. I think the integration of stress testing impact / stress decline into the capital targets has streamlined and better bridged the two capital regimes i.e., regulatory capital and capital planning.

Where do you think banks have to focus coming out of the COVID-19 pandemic crisis?

Banks are sitting on significant amount of capital resources and I think the key focus is going to be effective use of this resource in the near term as well as long term. Though very optimistic near term recovery is still shrouded in pandemic uncertainty and therefore need to preserve capital, longer term impacts on certain industries and asset classes, supply chain issues, inflation and yield curve trajectory while on the longer horizon there several risks and challenges for the bank operating models e.g., fintech and digital transformation, clean energy and climate risks. 

How do you feel as though technology processes can be enhanced within capital management?

Integrated modeling, agile platforms and strong analytics are essential for financial planning and forecasting to dynamically assess impact of emerging risks and rapidly changing scenarios, coherent and consistent estimation approaches for material portfolios across balance sheet and income statement, and effective management oversight of key risks, assumptions, limitations and compensating controls.

In terms of our platform, (our conferences are informal and intimate peer led meetings where all speakers and delegates are senior executives from top financial institutions), how do you see it assisting you with overcoming the challenges you currently face?

I have been part of this platform for the last three years and I think it is a great opportunity to share and discuss capital and stress testing related challenges, learnings and opportunities with peer bank executives. Especially open discussions and exchange of potential approaches and leading practices on evolving regulatory regimes, economic and financial risks, and implications for capital management processes and strategies.

Reflecting on the last year: Assessing recent market developments and implications on capital management processes 

• Bringing together the impact of COVID from different perspectives to create meaningful processes going forwards
• Overcoming difficulties with not being in control of capital during the pandemic due to restrictions on capital distributions by the fed 
• Updating forecasting models with post COVID data points   
• The impact of stress capital buffer framework to guide distribution  

For registration pricing and multiple attendee discounts, please contact:

Ria Kiayia 
riak@global-fmi.com

Sudhir will be presenting at the start of Day One!