Citibank 2010 Annual Report Download - page 63

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Capital Resources of Citigroup’s Depository Institutions
Citigroup’s U.S. subsidiary depository institutions are also subject to risk-
based capital guidelines issued by their respective primary federal bank
regulatory agencies, which are similar to the guidelines of the Federal
Reserve Board. To be “well capitalized” under current regulatory definitions,
Citigroup’s depository institutions must have a Tier 1 Capital ratio of at least
6%, a Total Capital (Tier 1 Capital + Tier 2 Capital) ratio of at least 10%, and
a Leverage ratio of at least 5%, and not be subject to a regulatory directive to
meet and maintain higher capital levels.
At December 31, 2010 and December 31, 2009, all of Citigroup’s U.S.
subsidiary depository institutions including Citigroup’s primary subsidiary
depository institution, Citibank, N.A., were “well capitalized” under current
federal bank regulatory agency definitions, as noted in the following table:
Citibank, N.A. Components of Capital and Ratios Under
Regulatory Guidelines
In billions of dollars at year end, except ratios 2010 2009
Tier 1 Common $103.9 $ 95.8
Tier 1 Capital 104.6 96.8
Total Capital (Tier 1 Capital + Tier 2 Capital) 117.7 110.6
Tier 1 Common ratio 15.07% 13.02%
Tier 1 Capital ratio 15.17 13.16
Total Capital ratio 17.06 15.03
Leverage ratio 8.88 8.31
There are various legal and regulatory limitations on the ability of
Citigroup’s subsidiary depository institutions to pay dividends to Citigroup
and its non-bank subsidiaries. In determining the declaration of dividends,
each depository institution must also consider its effect on applicable risk-
based capital and Leverage ratio requirements, as well as policy statements
of the federal regulatory agencies that indicate that banking organizations
should generally pay dividends out of current operating earnings. Citigroup
did not receive any dividends from its bank subsidiaries during 2010. See also
“Funding and Liquidity—Liquidity Transfer Between Entities” below.