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Regulatory Matters
 12 Months Ended
Dec. 31, 2022
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]  
Regulatory Matters REGULATORY MATTERS
We are subject to the regulations of certain federal, state and foreign agencies and undergo examinations by such regulatory authorities.
The ability to undertake new business initiatives (including acquisitions), the access to and cost of funding for new business initiatives, the ability to pay dividends, the ability to repurchase shares or other capital instruments, the level of deposit insurance costs, and the level and nature of regulatory oversight depend, in large part, on a financial institution’s capital strength.
As of January 1, 2020, the 2019 Tailoring Rules became effective for PNC. The most significant changes involve the election to exclude specific AOCI items from CET1 capital and higher thresholds used to calculate CET1 capital deductions.
On March 27, 2020, the regulatory agencies issued an interim final rule permitting banking organizations to delay the estimated impact on regulatory capital stemming from implementing the CECL standard. PNC elected to delay the estimated impact of CECL on CET1 capital through December 31, 2021, followed by a three-year transition period. CECL’s estimated impact on CET1 capital is defined as the change in retained earnings at adoption plus or minus 25% of the change in CECL ACL at the balance sheet date, excluding the allowance for PCD loans, compared to CECL ACL at adoption. Effective for the first quarter of 2022, PNC is now in the three-year transition period, and the full impact of the CECL standard is being phased-in to regulatory capital through December 31, 2024.
At December 31, 2022 and 2021, PNC and PNC Bank, our domestic banking subsidiary, were both considered “well capitalized,” based on applicable U.S. regulatory capital ratio requirements.
The following table sets forth the Basel III regulatory capital ratios at December 31, 2022 and 2021, for PNC and PNC Bank:
Table 115: Basel Regulatory Capital (a)
 AmountRatios
December 31
Dollars in millions		2022202120222021“Well Capitalized” Requirements
Risk-based capital
Common equity Tier 1
PNC$39,685 $40,066 9.1 %10.3 %N/A
PNC Bank$43,658 $42,024 10.2 %11.1 %6.5 %
Tier 1
PNC$45,431 $45,075 10.4 %11.6 %6.0 %
PNC Bank$43,658 $42,024 10.2 %11.1 %8.0 %
Total
PNC$53,440 $52,451 12.3 %13.5 %10.0 %
PNC Bank$50,666 $49,083 11.8 %12.9 %10.0 %
Leverage
PNC$45,431 $45,075 8.2 %8.2 %N/A
PNC Bank$43,658 $42,024 8.0 %7.8 %5.0 %
(a)Calculated using the regulatory capital methodology applicable to us during both 2022 and 2021.
The principal source of parent company cash flow is the dividends it receives from PNC Bank, which may be impacted by the following:
•Capital needs,
•Laws and regulations,
•Corporate policies,
•Contractual restrictions, and
•Other factors.

Also, there are statutory and regulatory limitations on the ability of national banks to pay dividends or make other capital distributions. The amount available for dividend payments to the parent company by PNC Bank without prior regulatory approval was approximately $3.5 billion at December 31, 2022.

Under federal law, a bank subsidiary generally may not extend credit to, or engage in other types of covered transactions (including the purchase of assets) with, the parent company or its non-bank subsidiaries on terms and under circumstances that are not substantially the same as comparable transactions with nonaffiliates. A bank subsidiary may not extend credit to, or engage in a covered transaction with, the parent company or a non-bank subsidiary if the aggregate amount of the bank’s extensions of credit and other covered transactions with the parent company or non-bank subsidiary exceeds 10% of the capital stock and surplus of such bank subsidiary or the aggregate amount of the bank’s extensions of credit and other covered transactions with the parent company and all non-bank subsidiaries exceeds 20% of the capital stock and surplus of such bank subsidiary. Such extensions of credit, with limited exceptions, must be at least fully collateralized in accordance with specified collateralization thresholds, with the thresholds varying based on the type of assets serving as collateral. In certain circumstances, federal regulatory authorities may impose more restrictive limitations.

The Federal Reserve is authorized to establish reserve requirements for certain types of deposits and other liabilities of depository institutions. Effective March 26, 2020, the reserve requirement ratios were reduced to zero. At December 31, 2022, the balance outstanding at the Federal Reserve Bank was $26.9 billion. This amount is included in Interest-earning deposits with banks on our Consolidated Balance Sheet.