Regulatory Capital

12 Months Ended

Dec. 31, 2017

Regulatory Capital Requirements [Abstract]

Regulatory Capital

REGULATORY CAPITAL

The Company and the Bank are each subject to various regulatory capital requirements administered by the FRB and the OCC. Quantitative measures established by regulation to ensure capital adequacy require that the Company and the Bank each maintain minimum amounts and ratios of Total, Tier 1 and Common Equity Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. We compute capital ratios in accordance with Federal Reserve capital guidelines and OCC capital guidelines for assessing adequacy of capital for the Company and CIT Bank, respectively. At December 31, 2017 and December 31, 2016, the regulatory capital guidelines applicable to the Company and Bank were based on the Basel III Final Rule.

The following table summarizes the actual and effective minimum required capital ratios:

Capital Components and Ratios (dollars in millions)

	CIT						CIT Bank, N.A.
	December 31, 2017			December 31, 2016			December 31, 2017			December 31, 2016
Common Equity Tier 1 Capital	$	6,479.8		$	9,058.9		$	4,751.6		$	4,623.2
Tier 1 Capital	6,775.4			9,058.9			4,751.6			4,623.2
Total Capital	7,251.0			9,535.2			5,183.3			5,053.4
Risk-Weighted Assets (1)	44,537.7			64,586.3			34,527.2			34,410.3
Common Equity Tier 1 Capital Ratio
Actual	14.5		%	14.0		%	13.8		%	13.4		%
Effective minimum ratios under Basel III guidelines (2)	5.750		%	5.125		%	5.750		%	5.125		%
Tier 1 Capital Ratio:
Actual	15.2		%	14.0		%	13.8		%	13.4		%
Effective minimum ratios under Basel III guidelines (2)	7.250		%	6.625		%	7.250		%	6.625		%
Total Capital Ratio:
Actual	16.3		%	14.8		%	15.0		%	14.7		%
Effective minimum ratios under Basel III guidelines (2)	9.250		%	8.625		%	9.250		%	8.625		%
Tier 1 Leverage Ratio:
Actual	13.8		%	13.9		%	11.8		%	10.9		%
Required minimum ratio for capital adequacy purposes	4.0		%	4.0		%	4.0		%	4.0		%

⁽¹⁾  The decrease in CIT's Risk-Weighted Assets from December 31, 2016 to December 31, 2017, reflects the sale of the Commercial Air business.

⁽²⁾  Required ratios under Basel III Final Rule in effect as of the reporting date including the partially phased-in capital conservation buffer.