BB&T 2014 Annual Report Download - page 16

Table of Contents
The following table summarizes the capital requirements and BB&T’s internal targets under Basel III:


   
      
Common equity Tier 1 to risk-weighted assets 4.5 % 6.5 % 5.125 % 5.750 % 6.375 % 7.000 % 8.5 %
Tier 1 capital to risk-weighted assets 6.0 8.0 6.625 7.250 7.875 8.500 10.0
Total capital to risk-weighted assets 8.0 10.0 8.625 9.250 9.875 10.500 12.0
Leverage ratio 4.0 5.0 N/A N/A N/A N/A 7.0
(1) Upon Basel III becoming effective on January 1, 2015, BB&T's goal is to maintain capital levels above the 2019 requirements.
The following table presents the calculation of the common equity Tier 1 ratio under the U.S. Basel III guidelines:



 

Tier 1 common equity under Basel I definition $ 15,237 $ 13,471
Net impact of differences between Basel I and Basel III definitions 86 98
Tier 1 common equity under Basel III definition $ 15,323 $ 13,569
Risk-weighted assets under Basel III definition $ 149,071 $ 140,670
Common equity Tier 1 ratio under Basel III 10.3 % 9.7 %
(1) The Basel III amounts are based upon management's interpretation of the rules adopted by the FRB, which became effective on January 1, 2015.
Home Mortgage Disclosure (Regulation C)
The CFPB published proposed amendments to Regulation C to implement changes to HMDA made by section 1094 of the Dodd-Frank Act. Specifically, the
CFPB proposed several changes to revise the tests for determining which financial institutions and housing-related credit transactions are covered under
HMDA. The CFPB also proposes to require financial institutions to report new data points identified in the Dodd-Frank Act, as well as other data points the
CFPB believes may be necessary to carry out the purposes of HMDA. Further, the CFPB proposes to better align the requirements of Regulation C to existing
industry standards where practicable. To improve the quality and timeliness of HMDA data, the CFPB proposed to require financial institutions with large
numbers of reported transactions to submit their HMDA data on a quarterly, rather than an annual, basis.
Enhanced Prudential Standards for BHCs and Foreign Banking
The FRB has adopted amendments to Regulation YY to implement certain components of the enhanced prudential standards required to be established under
Section 165 of the Dodd-Frank Act. The amendments became effective on June 1, 2014. The enhanced prudential standards include risk-based and leverage
capital requirements, liquidity standards, requirements for overall risk management, stress-test requirements, and a 15-to-1 debt-to-equity limit for companies
that the Council has determined pose a grave threat to financial stability. The amendments also establish risk committee requirements and capital stress-
testing requirements for certain BHCs and foreign banking organizations with total consolidated assets of $10 billion or more.
15
Source: BB&T CORP, 10-K, February 25, 2015 Powered by Morningstar® Document Research℠
The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,
except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.