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Regulatory and Capital Adequacy | 12 Months Ended
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Dec. 31, 2019
Banking and Thrift [Abstract] |
Regulatory and Capital Adequacy |
NOTE 11—REGULATORY AND CAPITAL ADEQUACY
Regulation and Capital Adequacy Bank holding companies (“BHCs”) and national banks are subject to capital adequacy standards adopted by the Federal Reserve, Office of the Comptroller of the Currency and Federal Deposit Insurance Corporation (collectively, the “Federal Banking Agencies”), including the Basel III Capital Rule. Moreover, the Banks, as insured depository institutions, are subject to prompt corrective action (“PCA”) capital regulations, which require the Federal Banking Agencies to take prompt corrective action for banks that do not meet PCA capital requirements. We entered parallel run under the Basel III Advanced Approaches on January 1, 2015, during which we calculated capital ratios under both the Basel III Standardized Approach and the Basel III Advanced Approaches, though we continued to use the Standardized Approach for purposes of meeting regulatory capital requirements. In October 2019, the Federal Banking Agencies amended the Basel III Capital Rule to provide for tailored application of certain capital requirements across different categories of banking institutions (“Tailoring Rules”). As a bank holding company (“BHC”) with total consolidated assets of at least $250 billion that does not exceed any of the applicable risk-based thresholds, we are a Category III institution under the Tailoring Rules. As such, we are no longer subject to the Basel III Advanced Approaches and certain associated capital requirements, such as the requirement to include in regulatory capital certain elements of AOCI. Under the Basel III Capital Rule, our regulatory minimum risk-based and leverage capital requirements include a common equity Tier 1 capital ratio of at least 4.5%, a Tier 1 capital ratio of at least 6.0%, a total capital ratio of at least 8.0%, a Tier 1 leverage capital ratio of at least 4.0%, and a supplementary leverage ratio of 3.0%. For additional information about the capital adequacy guidelines we are subject to, see “Part I —Item 1. Business—Supervision and Regulation.” The following table provides a comparison of our regulatory capital amounts and ratios under the Basel III Standardized Approach subject to the applicable transition provisions, the regulatory minimum capital adequacy ratios and the PCA well-capitalized level for each ratio,where applicable, as of December 31, 2019 and 2018. Table 11.1: Capital Ratios Under Basel III(1)
|  | December 31, 2019 |  | December 31, 2018
(Dollars in millions) |  | Capital Amount |  | Capital Ratio |  | Minimum Capital Adequacy |  | Well- Capitalized |  | Capital Amount |  | Capital Ratio |  | Minimum Capital Adequacy |  | Well- Capitalized
Capital One Financial Corp: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common equity Tier 1 capital(2) |  | $ | 38,162 |  |  | 12.2 | % |  | 4.5 | % |  | N/A |  |  | $ | 33,071 |  |  | 11.2 | % |  | 4.5 | % |  | N/A |
Tier 1 capital(3) |  | 43,015 |  |  | 13.7 |  |  | 6.0 |  |  | 6.0 | % |  | 37,431 |  |  | 12.7 |  |  | 6.0 |  |  | 6.0 | %
Total capital(4) |  | 50,348 |  |  | 16.1 |  |  | 8.0 |  |  | 10.0 |  |  | 44,645 |  |  | 15.1 |  |  | 8.0 |  |  | 10.0 |
Tier 1 leverage(5) |  | 43,015 |  |  | 11.7 |  |  | 4.0 |  |  | N/A |  |  | 37,431 |  |  | 10.7 |  |  | 4.0 |  |  | N/A |
Supplementary leverage(6) |  | 43,015 |  |  | 9.9 |  |  | 3.0 |  |  | N/A |  |  | 37,431 |  |  | 9.0 |  |  | 3.0 |  |  | N/A |
COBNA: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common equity Tier 1 capital(2) |  | 17,883 |  |  | 16.1 |  |  | 4.5 |  |  | 6.5 |  |  | 16,378 |  |  | 15.3 |  |  | 4.5 |  |  | 6.5 |
Tier 1 capital(3) |  | 17,883 |  |  | 16.1 |  |  | 6.0 |  |  | 8.0 |  |  | 16,378 |  |  | 15.3 |  |  | 6.0 |  |  | 8.0 |
Total capital(4) |  | 20,109 |  |  | 18.1 |  |  | 8.0 |  |  | 10.0 |  |  | 18,788 |  |  | 17.6 |  |  | 8.0 |  |  | 10.0 |
Tier 1 leverage(5) |  | 17,883 |  |  | 14.8 |  |  | 4.0 |  |  | 5.0 |  |  | 16,378 |  |  | 14.0 |  |  | 4.0 |  |  | 5.0 |
Supplementary leverage(6) |  | 17,883 |  |  | 12.1 |  |  | 3.0 |  |  | N/A |  |  | 16,378 |  |  | 11.5 |  |  | 3.0 |  |  | N/A |
CONA: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common equity Tier 1 capital(2) |  | 28,445 |  |  | 13.4 |  |  | 4.5 |  |  | 6.5 |  |  | 25,637 |  |  | 13.0 |  |  | 4.5 |  |  | 6.5 |
Tier 1 capital(3) |  | 28,445 |  |  | 13.4 |  |  | 6.0 |  |  | 8.0 |  |  | 25,637 |  |  | 13.0 |  |  | 6.0 |  |  | 8.0 |
Total capital(4) |  | 30,852 |  |  | 14.5 |  |  | 8.0 |  |  | 10.0 |  |  | 27,912 |  |  | 14.2 |  |  | 8.0 |  |  | 10.0 |
Tier 1 leverage(5) |  | 28,445 |  |  | 9.2 |  |  | 4.0 |  |  | 5.0 |  |  | 25,637 |  |  | 9.1 |  |  | 4.0 |  |  | 5.0 |
Supplementary leverage(6) |  | 28,445 |  |  | 8.2 |  |  | 3.0 |  |  | N/A |  |  | 25,637 |  |  | 8.0 |  |  | 3.0 |  |  | N/A |
__________
(1) | Capital requirements that are not applicable are denoted by “N/A.”
(2) | Common equity Tier 1 capital ratio is a regulatory capital measure calculated based on common equity Tier 1 capital divided by risk-weighted assets.
(3) | Tier 1 capital ratio is a regulatory capital measure calculated based on Tier 1 capital divided by risk-weighted assets.
(4) | Total capital ratio is a regulatory capital measure calculated based on total capital divided by risk-weighted assets.
(5) | Tier 1 leverage ratio is a regulatory capital measure calculated based on Tier 1 capital divided by adjusted average assets.
(6) | Supplementary leverage ratio is a regulatory capital measure calculated based on Tier 1 capital divided by total leverage exposure.
We exceeded the minimum capital requirements and each of the Banks exceeded the minimum regulatory requirements and were well-capitalized under PCA requirements as of both December 31, 2019 and 2018. Regulatory restrictions exist that limit the ability of the Banks to transfer funds to our BHC. As of December 31, 2019, funds available for dividend payments from COBNA and CONA were $3.3 billion and $4.7 billion, respectively. Applicable provisions that may be contained in our borrowing agreements or the borrowing agreements of our subsidiaries may limit our subsidiaries’ ability to pay dividends to us or our ability to pay dividends to our stockholders. The Federal Reserve requires depository institutions to maintain certain cash reserves against specified deposit liabilities. As of December 31, 2019 and 2018, our reserve requirements totaled $1.7 billion and $1.9 billion, respectively.

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- Definition The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1C -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958572-112826 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1D -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958573-112826 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958570-112826 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958569-112826 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1G -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958577-112826 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1F -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958575-112826 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1E -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958574-112826 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958568-112826 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1H -URI http://asc.fasb.org/extlink&oid=117337116&loc=d3e65071-112826 + Details
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