BB&T 2015 Annual Report Download - page 15

TableofContents
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 8.0
(1) BB&T's goal is to maintain capital levels above the 2019 requirements.
BB&T's capital ratios are shown in the following table:



 
Common equity Tier 1 to risk-weighted assets 10.3 % 11.3 %
Tier 1 capital to risk-weighted assets 11.8 11.3
Total capital to risk-weighted assets 14.3 13.4
Leverage ratio 9.8 9.3
HMDA Regulations
The CFPB has issued final rules changing the reporting requirements for lenders under the HMDA. The new rules expand the range of transactions subject to
these requirements to include most securitized residential mortgage closed-end loans and lines. The rules also increase the overall amount of data required to
be collected and submitted, including additional data points about the applicable loans and expanded data about the borrowers. BB&T will be required to
begin collecting the expanded data on January 1, 2018.
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 during 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 Financial Stability Oversight 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.
FATCA and Conforming Regulations
During 2014, the IRS issued Notice 2014-33 (the “Notice”) regarding FATCA and its related withholding provisions. The Notice announced that calendar
years 2014 and 2015 are regarded as a transition period for purposes of IRS enforcement and administration with respect to the implementation of FATCA by
withholding agents, foreign financial institutions and other entities with IRC chapter 4 responsibilities. The Notice also announced the IRS’s intention to
further amend the regulations under Sections 1441, 1442, 1471, and 1472 of the IRC. Prior to the IRS issuing these amendments, taxpayers may rely on the
provisions of the Notice regarding the proposed amendments to the regulations. The transition period and other guidance described in the Notice are
intended to facilitate an orderly transition for withholding agent and foreign financial institution compliance with FATCA’s requirements and respond to
comments regarding certain aspects of the regulations under chapters 3 and 4 of the IRC. The new requirements became effective on December 31, 2015.
BB&T is in compliance with the applicable requirements.
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Source: BB&T CORP, 10-K, February 25, 2016 Powered by Morningstar® Document Research℠
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