Patent ID: 8712890

Claim:
A computer-implemented method, comprising: accessing information on a computing device, wherein the information represents available capital held by a financial institution, and wherein the information specifies a distribution of available capital held with respect to multiple capital regulatory categories; determining, with the computing device, a forecasting timeframe divided into multiple forecasting intervals; accessing a forecast of retained earnings and a forecast of unexpected losses for each of the forecasting intervals; projecting amounts of regulatory capital required for each of the forecasting intervals, wherein, for each of the forecasting intervals, the amounts of regulatory capital include an amount of regulatory capital with respect to each of the capital regulatory categories, and wherein each-amount of regulatory capital is projected based on a capital to risk adequacy ratio, wherein projecting includes: accessing projected risk weighted asset data for each of the forecasting intervals; and projecting the amounts of regulatory capital for each of the forecasting intervals based on the projected risk weighted asset data; determining, with the computing device, a set of constraints for each of the forecasting intervals, wherein each set of constraints includes a constraint with respect to each of the capital regulatory categories, and wherein each constraint is determined using the projected amount of regulatory capital for the respective forecasting interval; for each of the forecasting intervals, calculating an adjusted available capital with respect to each of the capital regulatory categories, wherein, for each of the forecasting intervals, the adjusted available capital is calculated based on the forecast of retained earnings and unexpected losses for that interval; and for each of the forecasting intervals, calculating optimized amounts of capital with respect to each of the capital regulatory categories, wherein, calculating the optimized amounts of capital for each of the forecasting intervals is based on the projected amounts of regulatory capital for each of the forecasting intervals, the adjusted available capital for each of the forecasting intervals, and the set of constraints for each of the forecasting intervals.