Comprehensive Capital Analysis and Review 2014: Summary Instructions and Guidance

Figure 2. Quantitative assessments of capital actions

Each box indicates a distinct scenario that will be submitted by each BHC. Planned capital actions are estimated by each BHC using the BHC baseline scenario and the alternative capital actions are estimated under the BHC’s stress scenario in accordance with the BHC’s internal capital policies.

The header "Pro forma capital ratios" contains three boxes. One box has "BHC stress" with "Alternative capital actions". A second box has "Supervisory adverse" with "Planned captial actions" and "DFA stress test capital actions". A third box has "Supervisory severely adverse" with "Planned capital actions" and "DFA stress test capital actions".

The header "Common dividend payout ratio" contains a box that has "BHC baseline*" with "Planned capital actions". Under this header, along with the header "Regulatory capital transition" is a box that has "Supervisory baseline*" with "Planned capital actions" and "DFA stress test captial actions".

* If a BHC determines the supervisory baseline scenario to be appropriate for their own BHC baseline, the BHC may submit identical FR Y-14A Summary schedules with the exception of the capital worksheets noted above. All BHCs must complete two capital worksheets for the supervisory baseline and supervisory severely adverse scenario. Return to text

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Figure 3. Regulatory capital transitions evaluation path

Tier 1 common BHC projected ratio Fully phased-in target Transitional target Steady progress
Q3 2013 5.502% 9.000%   5.502%
Q4 2013 7.000% 9.000% 3.500% 6.062%
Q4 2014 8.000% 9.000% 4.000% 6.621%
Q4 2015 9.000% 9.000% 4.500% 7.181%
Q4 2016 10.000% 9.000% 5.625% 7.741%
Q4 2017 11.000% 9.000% 6.750% 8.300%
Q4 2018 12.000% 9.000% 7.875% 8.860%
Q4 2019   9.000% 9.000% 9.000%

Note: Zone 1 (area on chart above all lines) indicates that the BHC already meets the fully phased-in target ratios (common equity tier 1, tier 1 risk-based, tier 1 leverage, supplemental leverage) over the entire forecasted period (i.e., Q3 2013 to Q4 2018).
Zone 2 (area on chart between the line "Fully Phased-in Target" and "Steady Progress") indicates that the BHC meets the steady progress path.
Zone 3 (area on chart between lines "Steady Progress" and "Transitional Target") indicates that the BHC meets the transitional targets, but without steady progress.
Zone 4 (area on chart below line "Transitional Target") indicates that the BHC does not meet the transitional targets.

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Last update: November 20, 2013