Evaluate the Capital Factor of Bac Resolution PlanCapitalBAC must provide material entities sufficient capital to make sure that those entities can maintain their crucial services when the company is resolved. We evaluated capital from four aspects: capital preparedness, regulatory capital, capital enhancements and risk management governance.Capital preparednessAs shown in table-1, BAC reduced overall leverage via increasing capital, cutting down half consolidated long-term debt, reducing 85% outstanding commercial paper and eliminating $73 billion in divestitures. And with the purpose of lowering refinancing risk, the company smoothed and extended debt maturity profile. It strengthened capital and remained long-term debt levels in order to support the material entities’ capital needs. Since BAC has achieved a stronger financial position in 2016 than it had ever been, it can provide sufficient capital easily in a business-as-usual scenario. Further, under resolution scenario, such a well-positioned company still can aid itself in returning to financial health.
Table-1 Changes in capital and debt indicators (in billion)20162009Increased Common Equity Tier 1 capital$168 $76 Increased tangible common capital$170 $119 Increased total equity capital$267 $231 Reduced consolidated long-term debt$217 $523 Lowered near-term debt and long-term debt maturing within one year$20-25 $50     Source: 2015 Resolution Plan, 2016 SubmissionRegulatory capitalBAC is subject to regulatory capital rules issued by U.S. banking regulators including Basel III. Table-2 shows the capital composition and ratios under Basel III with two methods. All capital ratio and supplementary leverage ratio meet the regulatory minimum requirement, demonstrating that the company meets the definition of “well capitalized” under current regulatory requirements.
The following table illustrates the composition of US equity and banking banking in a broad range of regulatory and capital standards:
 Table-2(1): Financial System Status, Financial System Governance, and Corporate Governance, by Region
In 2014, we published a financial system report on the state of the American economy. (For information on a financial system for more information on our economic history visit
. The analysis uses the following statistical procedures for accounting and other purposes. The tables are cross-referenced with the annual Financial System and Financial Services Report (ASC) of the Federal Reserve Board (.pdf). Also see our 2013 Financial System and Financial Services Report for updated data. These table summaries represent a summary of financial system performance before regulatory and capital requirement requirements were implemented in 2013.
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