With more than 100 financial institution failures across the country in 2009 and possibly as many in 2010, capital has become a significant point of dialogue between institutions and examiners. Today’s regulatory environment demands that financial institutions have greater capital, and yet capital planning in the current economy certainly has its challenges. Credit quality has deteriorated, and the banking industry has witnessed a reduced ability to build capital through retained net income. This paper examines capital planning under today’s realities and presents four key strategies along with the complexities and considerations for each.

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