{{institution_name}}
Institution Name
Example: Example: Meridian Commercial Bank
Enter the regulated institution or consolidation group.
Ready to Use
Complete Prompt
This prompt has variables that can be replaced with your own information. Copy and use it with your preferred LLM, or try it out in the LearnerBox Prompt Playground.
Act as a senior prudential-risk and regulatory-capital professional.
Develop a regulatory capital adequacy scenario-analysis framework using the information provided below.
Institution:
{{institution_name}}
Jurisdiction and regulatory framework:
{{regulatory_framework}}
Capital resources:
{{capital_resources}}
Risk-weighted assets and exposures:
{{rwa_exposures}}
Earnings, losses, and balance-sheet forecast:
{{financial_forecast}}
Stress scenarios:
{{stress_scenarios}}
Policies, buffers, and management actions:
{{policies_actions}}
Analysis requirements:
1. Confirm the applicable jurisdiction, regulatory standard, reporting date, consolidation scope, and transitional arrangements.
2. Map capital resources by regulatory category using supplied rules.
3. Map exposures and risk-weighted assets by:
- credit risk;
- market risk;
- operational risk;
- counterparty credit risk;
- securitization;
- concentration;
- credit valuation adjustment; and
- other applicable categories.
4. Establish the opening regulatory capital position.
5. Build baseline and stress projections by period.
6. Model impacts from:
- credit losses;
- market losses;
- operational losses;
- revenue decline;
- margin compression;
- RWA migration;
- rating migration;
- balance-sheet growth;
- FX;
- interest rates;
- dividends;
- capital issuance;
- deductions;
- provisions; and
- management actions.
7. Calculate applicable capital ratios and buffers using only supplied regulatory definitions.
8. Identify:
- minimum requirements;
- conservation buffers;
- countercyclical buffers;
- systemic buffers;
- management buffers; and
- internal risk appetite thresholds.
9. Determine the timing and severity of buffer use or threshold breach.
10. Evaluate management actions for feasibility, timing, governance, market dependence, and second-order effects.
11. Conduct reverse stress testing to identify scenarios that breach minimum requirements.
12. Separate accounting capital, economic capital, and regulatory capital.
13. Do not invent regulatory rules, risk weights, thresholds, transitional treatment, loss rates, or management actions.
14. Require current legal, regulatory, finance, and model-risk validation.
Present the result as:
{{output_format}}
Include:
- regulatory scope and assumptions;
- opening capital position;
- capital-resource mapping;
- RWA composition;
- baseline projection;
- stress-scenario projections;
- capital-ratio waterfall;
- buffer and threshold analysis;
- management-action assessment;
- reverse stress test;
- data and model limitations;
- validation requirements; and
- governance recommendations.Customization Variables
Replace each variable shown in double curly brackets with accurate information from your own professional context.
{{regulatory_framework}}
Jurisdiction and Regulatory Framework
Example: Provide jurisdiction, regulator, applicable standards, reporting date, scope, and transitional rules.
Use current official regulatory requirements.
{{capital_resources}}
Capital Resources
Example: Provide capital instruments, reserves, deductions, adjustments, and eligibility classifications.
Map capital according to the applicable official definitions.
{{rwa_exposures}}
Risk-Weighted Assets and Exposures
Example: Provide exposures, risk weights, models, ratings, RWA categories, and concentration data.
Include both current RWA and projected migration assumptions.
{{financial_forecast}}
Earnings, Losses, and Balance-Sheet Forecast
Example: Provide revenue, costs, losses, provisions, dividends, growth, and balance-sheet projections.
Capital projections depend on the underlying financial forecast.
{{stress_scenarios}}
Stress Scenarios
Example: Provide approved macro, credit, market, operational, and idiosyncratic stress assumptions.
Use regulator-approved or internally approved scenarios.
{{policies_actions}}
Policies, Buffers, and Management Actions
Example: Provide minimums, buffers, risk appetite, dividends, issuance, deleveraging, and contingency actions.
Include action feasibility, lead time, governance, and dependencies.
{{output_format}}
Output Format
Choose the format appropriate for planning, governance, or model implementation.
Expected Output
A regulatory capital scenario framework containing capital-resource mapping, RWA composition, baseline and stress projections, capital-ratio waterfalls, buffers, management actions, reverse stress tests, limitations, and validation requirements.
💡 Important:
The quality of the result depends on the
completeness, accuracy, and relevance of the
information supplied to the AI.
Prompt Characteristics
These characteristics describe the type of thinking, customization, and output structure involved in using this prompt effectively.
Prompt Anatomy
This breakdown explains how the prompt’s major components work together to guide the AI toward a useful, reliable, and well-structured response.
Role
Positions the AI as a prudential-risk and regulatory-capital specialist.
Context
Defines the framework, capital, RWA, forecasts, stresses, policies, buffers, and actions.
Task
Requires baseline, stress, buffer, management-action, and reverse-stress capital analysis.
Constraints
Prevents invented regulations, thresholds, risk weights, loss rates, and capital classifications.
Output Structure
Requires capital mapping, projections, waterfalls, buffers, actions, reverse stresses, and validation.
Input Variables
Institution, framework, capital resources, RWA, forecast, scenarios, policies, and output format.
Customization Tips
- Use current official regulatory definitions and thresholds.
- Separate regulatory capital from accounting and economic capital.
- Model both numerator effects and RWA migration.
- Evaluate management actions for timing and feasibility, not only theoretical impact.
- Include reverse stress testing and independent model validation.
Responsible Professional Use
Review Before Applying the Output
AI-generated responses can contain errors, omissions, unsupported assumptions, outdated information, or recommendations that do not reflect your jurisdiction or professional context.
Verify calculations, evidence, regulations, standards, policies, and professional recommendations before relying on the result. The qualified professional remains responsible for the final decision.