Bank of America to Use Advanced Approaches for Capital Requirements
OREANDA-NEWS. September 04, 2015. Bank of America today announced the Federal Reserve Board and the Office of the Comptroller of the Currency have permitted Bank of America and its national subsidiary banks to begin using the Advanced approaches capital framework to determine risk-based capital requirements in the fourth quarter of 2015.
With the approval to exit parallel run, Bank of America will be required to report regulatory capital ratios and risk-weighted assets under both the Standardized and Advanced approaches. The approach that yields the lower ratio is to be used to assess capital adequacy.
As previously disclosed in the company’s second-quarter 2015 10-Q filing, incorporating certain modifications into the company’s internal analytical models results in an estimated pro-forma Basel 3 Common Equity Tier 1 ratio on a fully phased-in basis of approximately 9.3 percent at June 30, 20151.
1 Bank of America’s Basel 3 Advanced approaches estimate reflects the full impact of Basel 3 changes to capital composition after the transition period ends on January 1, 2019. This estimate also assumes approval by U.S. banking regulators of the company’s Internal Models Methodology (IMM).
Bank of America
Bank of America is one of the world's leading
financial institutions, serving individual consumers, small and
middle-market businesses and large corporations with a full range of
banking, investing, asset management and other financial and risk
management products and services. The company provides unmatched
convenience in the United States, serving approximately 48 million
consumer and small business relationships with approximately 4,800
retail financial centers, approximately 16,000 ATMs, and award-winning
online banking with 31 million active users and approximately 18 million
mobile users. Bank of America is among the world's leading wealth
management companies and is a global leader in corporate and investment
banking and trading across a broad range of asset classes, serving
corporations, governments, institutions and individuals around the
world. Bank of America offers industry-leading support to approximately
3 million small business owners through a suite of innovative,
easy-to-use online products and services. The company serves clients
through operations in all 50 states, the District of Columbia, the U.S.
Virgin Islands, Puerto Rico and more than 35 countries. Bank of America
Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
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