Bank Regulatory Capital Due Diligence
Anweshna reads capital plans and call-report data for the regulatory capital position that determines how much room a bank actually has to absorb losses.
What it screens for
- Capital ratios — CET1, Tier 1, and total capital ratios against regulatory minimums.
- Leverage exposure — the leverage ratio and how much cushion it carries above the floor.
- Regulatory minimums — how close the institution sits to well-capitalized thresholds.
- PCA category risk — Prompt Corrective Action category classification and any trend toward a lower category.
- Capital planning — stress-test results and capital-raise plans disclosed in the documents.
Why it's a blocking category
Regulatory Capital ties Asset Quality for the highest weight in the Banking ruleset at 25%, and is one of five blocking categories — a score of 70 or above halts the deal for mandatory review. A capital shortfall isn't just a balance-sheet number; it can trigger a formal PCA designation with binding regulatory consequences that follow the institution through closing.
Regulatory Capital FAQ
What does Anweshna screen for in Regulatory Capital?
Anweshna screens deal documents for capital ratios, leverage exposure, and regulatory minimums, among other signals. See the full list of signals above.
Is Regulatory Capital a blocking risk category?
Yes — Regulatory Capital carries a 25% weight in Anweshna's composite score and is one of the categories that can independently flag a deal for mandatory review: any document scoring 70 or above here halts the deal until a human reviews it.