KeyBank 2013 Annual Report Download - page 24

New minimum capital requirements
Under the Regulatory Capital Rules, “standardized approach” banking organizations, like Key, will be required
to meet the minimum capital and leverage ratios set forth in the table below. At December 31, 2013, Key had an
estimated Common Equity Tier 1 Capital Ratio of 10.7% under Basel III. Also at December 31, 2013, based on
the fully phased-in Regulatory Capital Rules, Key estimates that its capital and leverage ratios would be as set
forth in the table below.
Estimated Ratios vs. Minimum Capital Ratios Calculated Under the Fully Phased-In
Regulatory Capital Rules
Ratios (including Capital conservation buffer)
Key
December 31, 2013
Estimated
Minimum
January 1,
2015
Phase-in
Period
Minimum
January 1,
2019
Common Equity Tier 1 10.7 % 4.5 % None 4.5 %
Capital conservation buffer (a) — 1/1/16 - 1/1/19 2.5
Common Equity Tier 1 + Capital conservation buffer 4.5 1/1/16 - 1/1/19 7.0
Tier 1 Capital 11.0 6.0 None 6.0
Tier 1 Capital + Capital conservation buffer 6.0 1/1/16 - 1/1/19 8.5
Total Capital 13.4 8.0 None 8.0
Total Capital + Capital conservation buffer 8.0 1/1/16 - 1/1/19 10.5
Leverage (b) 10.3 4.0 None 4.0
(a) Capital conservation buffer must consist of Common Equity Tier 1 capital. Key is not subject to the countercyclical capital buffer of up
to 2.5% imposed under the “advanced approaches” portion of the Regulatory Capital Rules.
(b) Key is not subject to the proposed 3% supplemental leverage ratio requirement imposed under the “advanced approaches” portion of the
Regulatory Capital Rules or to the supplemental leverage buffer of at least 2% proposed for “advanced approaches” banks under an NPR
published by the federal banking agencies in August 2013 (the “August 2013 NPR”).
Revised prompt corrective action standards
Under the Regulatory Capital Rules, the prompt corrective action capital category threshold ratios applicable to
FDIC-insured depository institutions such as KeyBank will be revised, effective January 1, 2015. The Revised
Prompt Corrective Action table, below, identifies the capital category threshold ratios for a “well capitalized”
and an “adequately capitalized” institution under the current rule and the Regulatory Capital Rules.
“Well Capitalized” and “Adequately Capitalized” Capital Category Ratios under Current and
Revised Prompt Corrective Action Rules
Prompt Corrective Action
Capital Category
Well Capitalized Adequately Capitalized
Ratio Revised Current Revised Current
Common Equity Tier 1 Risk-Based 6.5 % N/A 4.5 % N/A
Tier 1 Risk-Based 8.0 6.0 % 6.0 4.0 %
Total Risk-Based 10.0 10.0 8.0 8.0
Tier 1 Leverage (a) 5.0 5.0 4.0 3.0 or 4.0
(a) KeyBank is not subject to the enhanced supplementary leverage ratio proposed under the August 2013 NPR.
We believe that, as of December 31, 2013, KeyBank would meet all “well capitalized” capital adequacy
requirements under the Regulatory Capital Rules if such requirements were currently effective. As previously
indicated, the prompt corrective action requirements only apply to FDIC-insured depository institutions and not
to BHCs (like KeyCorp).
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