Regulatory Requirements (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Regulatory Capital and Capital Ratios

The Firm’s Regulatory Capital and Capital Ratios

	At December 31, 2018
$ in millions	Required Ratio¹		Amount	Ratio
Risk-based capital
Common Equity Tier 1 capital	8.6%	$	62,086	16.9%
Tier 1 capital	10.1%		70,619	19.2%
Total capital	12.1%		80,052	21.8%
Total RWA			367,309
Leverage-based capital
Tier 1 leverage	4.0%	$	70,619	8.4%
Adjusted average assets²			843,074
SLR³	5.0%		70,619	6.5%
Supplementary leverage exposure⁴			1,092,672

	At December 31, 2017
$ in millions	Required Ratio¹		Amount	Ratio⁵
Risk-based capital
Common Equity Tier 1 capital	7.3%	$	61,134	16.5%
Tier 1 capital	8.8%		69,938	18.9%
Total capital	10.8%		80,275	21.7%
Total RWA			369,578
Leverage-based capital
Tier 1 leverage	4.0%	$	69,938	8.3%
Adjusted average assets²			842,270

1. Percentages represent minimum required regulatory capital ratios—for risk-based capital, the ratios are under the transitional rules.

2. Adjusted average assets represents the denominator of the Tier 1 leverage ratio and is composed of the average daily balance of consolidated on-balance sheet assets under U.S. GAAP during the quarters ended December 31, 2018 and December 31, 2017, adjusted for disallowed goodwill, intangible assets, certain deferred tax assets, certain investments in the capital instruments of unconsolidated financial institutions and other adjustments.

3. The SLR became effective as a capital standard on January 1, 2018.

4. Supplementary leverage exposure is the sum of Adjusted average assets used in the Tier 1 leverage ratio and other adjustments, primarily (i) potential future exposure for derivative exposures, gross-up for cash collateral netting where qualifying criteria are not met, and the effective notional principal amount of sold credit protection offset by qualifying purchased credit protection; (ii) the counterparty credit risk for repo-style transactions; and (iii) the credit equivalent amount for off-balance sheet exposures.

5. For risk- and leverage-based capital, regulatory compliance at December 31, 2017 was determined based on capital ratios calculated under transitional rules.

Schedule of Restricted Net Assets


$ in millions		AtDecember 31, 2018		At December 31, 2017
Restricted net assets	$	29,222	$	29,894

MSBNA

Regulatory Requirements

Schedule of Regulatory Capital and Capital Ratios

MSBNA’s Regulatory Capital

	At December 31, 2018
$ in millions	Required Ratio¹		Amount	Ratio
Risk-based capital
Common Equity Tier 1 capital	6.5%	$	15,221	19.5%
Tier 1 capital	8.0%		15,221	19.5%
Total capital	10.0%		15,484	19.8%
Leverage-based capital
Tier 1 leverage	5.0%	$	15,221	10.5%
SLR²	6.0%		15,221	8.2%

	At December 31, 2017
$ in millions	Required Ratio¹		Amount	Ratio³
Risk-based capital
Common Equity Tier 1 capital	6.5%	$	15,196	20.5%
Tier 1 capital	8.0%		15,196	20.5%
Total capital	10.0%		15,454	20.8%
Leverage-based capital
Tier 1 leverage	5.0%	$	15,196	11.8%

1. Ratios that are required in order to be considered well-capitalized for U.S. regulatory purposes.

2. The SLR became effective as a capital standard on January 1, 2018.

3. For risk- and leverage-based capital, regulatory compliance at December 31, 2017 was determined based on capital ratios calculated under transitional rules.

MSPBNA

Regulatory Requirements

Schedule of Regulatory Capital and Capital Ratios


MSPBNA’s Regulatory Capital

	At December 31, 2018
$ in millions	Required Ratio¹		Amount	Ratio
Risk-based capital
Common Equity Tier 1 capital	6.5%	$	7,183	25.2%
Tier 1 capital	8.0%		7,183	25.2%
Total capital	10.0%		7,229	25.4%
Leverage-based capital
Tier 1 leverage	5.0%	$	7,183	10.0%
SLR²	6.0%		7,183	9.6%

	At December 31, 2017
$ in millions	Required Ratio¹		Amount	Ratio³
Risk-based capital
Common Equity Tier 1 capital	6.5%	$	6,215	24.4%
Tier 1 capital	8.0%		6,215	24.4%
Total capital	10.0%		6,258	24.6%
Leverage-based capital
Tier 1 leverage	5.0%	$	6,215	9.7%

1. Ratios that are required in order to be considered well-capitalized for U.S. regulatory purposes.

2. The SLR became effective as a capital standard on January 1, 2018.

3. For risk- and leverage-based capital, regulatory compliance at December 31, 2017 was determined based on capital ratios calculated under transitional rules.

MS&Co.

Regulatory Requirements

Schedule of Broker-Dealer Regulatory Capital Requirements

U.S. Broker-Dealer Regulatory Capital Requirements

MS&Co. Regulatory Capital

$ in millions		At December 31, 2018		At December 31, 2017
Net capital	$	13,797	$	10,142
Excess net capital		11,333		8,018

MSSB LLC

Regulatory Requirements

Schedule of Broker-Dealer Regulatory Capital Requirements

MSSB LLC Regulatory Capital

$ in millions		At December 31, 2018		At December 31, 2017
Net capital	$	3,455	$	2,567
Excess net capital		3,313		2,400