Advanced techniques for optimizing banking regulatory capital requirements management

Posted: Jun 27, 2025

• Dr. Henry Rossi
• Dr. Isaac Rossi
• Dr. Isabella Wei

Abstract

This research introduces a novel computational framework that revolutionizes banking regulatory capital management through the integration of quantum-inspired optimization algorithms and multimodal behavioral analytics. Traditional approaches to capital requirement optimization have primarily focused on static risk-weighted asset calculations and stress testing scenarios, often resulting in capital inefficiencies and regulatory compliance challenges. Our methodology represents a paradigm shift by incorporating dynamic, real-time risk assessment capabilities that adapt to evolving market conditions and regulatory landscapes. The core innovation lies in the development of a hybrid quantum-classical optimization engine that processes complex regulatory constraints while simultaneously maximizing capital efficiency. We demonstrate that our approach can reduce excess capital buffers by 23.7