Morgan Stanley 2015 Annual Report Download - page 222

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Capital Measures and Minimum Regulatory Capital Ratios.
At December 31, 2015 At December 31, 2014
Amount Ratio
Minimum
Regulatory
Capital
Ratio(1) Amount Ratio
Minimum
Regulatory
Capital
Ratio(1)
(dollars in millions)
Regulatory capital and capital ratios:
Common Equity Tier 1 capital ............ $ 59,409 15.5% 4.5% $ 57,324 12.6% 4.0%
Tier 1 capital .......................... 66,722 17.4% 6.0% 64,182 14.1% 5.5%
Total capital ........................... 79,403 20.7% 8.0% 74,972 16.4% 8.0%
Tier 1 leverage(2) ...................... — 8.3% 4.0% — 7.9% 4.0%
Assets:
Total RWAs .......................... $ 384,162 N/A N/A $ 456,008 N/A N/A
Adjusted average assets(3) ............... 803,574 N/A N/A 810,524 N/A N/A
N/A—Not Applicable.
(1) Percentages represent minimum regulatory capital ratios under U.S. Basel III transitional rules.
(2) Tier 1 leverage ratios are calculated under U.S. Basel III Standardized Approach transitional rules.
(3) Beginning with the first quarter of 2015, in accordance with U.S. Basel III, adjusted average assets represent the denominator of the Tier 1 leverage ratio and are
composed of the average daily balance of consolidated on-balance sheet assets under U.S. GAAP during the calendar quarter, adjusted for disallowed goodwill,
transitional intangible assets, certain deferred tax assets, certain investments in the capital instruments of unconsolidated financial institutions and other
adjustments.
The Company’s U.S. Bank Subsidiaries.
The Company’s U.S. Bank Subsidiaries are subject to similar regulatory capital requirements as the Company. Failure to
meet minimum capital requirements can initiate certain mandatory and discretionary actions by regulators that, if undertaken,
could have a direct material effect on the Company’s U.S. Bank Subsidiaries’ financial statements. Under capital adequacy
guidelines and the regulatory framework for prompt corrective action, each of the Company’s U.S. Bank Subsidiaries must
meet specific capital guidelines that involve quantitative measures of its assets, liabilities and certain off-balance sheet items
as calculated under regulatory accounting practices.
Regulatory Capital and Capital Ratios for the Company’s U.S. Bank Subsidiaries.
Morgan Stanley Bank, N.A.
At December 31, 2015 At December 31, 2014
U.S. Basel III Transitional/
Standardized Approach Required
Capital
Ratio(1)
U.S. Basel III Transitional/
Basel I + Basel 2.5 Approach Required
Capital
Ratio(1)Amount Ratio Amount Ratio
(dollars in millions)
Common Equity Tier 1 capital ........ $ 13,333 15.1% 6.5% $ 12,355 12.2% 6.5%
Tier 1 capital ...................... 13,333 15.1% 8.0% 12,355 12.2% 8.0%
Total capital ...................... 15,097 17.1% 10.0% 14,040 13.9% 10.0%
Tier 1 leverage .................... 13,333 10.2% 5.0% 12,355 10.2% 5.0%
Morgan Stanley Private Bank, National Association
At December 31, 2015 At December 31, 2014
U.S. Basel III Transitional/
Standardized Approach Required
Capital
Ratio(1)
U.S. Basel III Transitional/
Basel I + Basel 2.5 Approach Required
Capital
Ratio(1)Amount Ratio Amount Ratio
(dollars in millions)
Common Equity Tier 1 capital ........ $ 4,197 26.5% 6.5% $ 2,468 20.3% 6.5%
Tier 1 capital ...................... 4,197 26.5% 8.0% 2,468 20.3% 8.0%
Total capital ...................... 4,225 26.7% 10.0% 2,480 20.4% 10.0%
Tier 1 leverage .................... 4,197 10.5% 5.0% 2,468 9.4% 5.0%
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