17. Net Capital Requirements

The Company is required to maintain net capital in certain regulated subsidiaries within a number of jurisdictions, which is partially maintained by retaining cash and cash equivalent investments in those subsidiaries or jurisdictions. As a result, such subsidiaries of the Company may be restricted in their ability to transfer cash between different jurisdictions and to their parents. Additionally, transfers of cash between international jurisdictions, including repatriation to the United States, may have adverse tax consequences that could discourage such transfers.

Banking Regulatory Requirements. BlackRock Institutional Trust Company, N.A. (“BTC”), a wholly owned subsidiary of the Company, is chartered as a national bank whose powers are limited to trust activities. BTC is subject to regulatory capital requirements administered by the Office of the Comptroller of the Currency. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the consolidated financial statements. Under the capital adequacy guidelines and the regulatory framework for prompt corrective action, BTC must meet specific capital guidelines that invoke quantitative measures of BTC’s assets, liabilities, and certain off-balance sheet items as calculated under the regulatory accounting practices. BTC’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulators to ensure capital adequacy require BTC to maintain a minimum Tier 1 capital and Tier 1 leverage ratio, as well as Tier 1 and total risk-based capital ratios. Based on BTC’s calculations as of December 31, 2015 and 2014, it exceeded the applicable capital adequacy requirements.

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
(in millions)	Amount		Ratio			Amount		Ratio			Amount		Ratio
December 31, 2015⁽¹⁾
Total capital (to risk weighted assets)	$	1,593		88.6	%	$	144		8.0	%	$	180		10.0	%
Common Equity Tier 1 capital (no risk weighted assets)⁽¹⁾	$	1,593		88.6	%	$	81		4.5	%	$	117		6.5	%
Tier 1 capital (to risk weighted assets)	$	1,593		88.6	%	$	108		6.0	%	$	144		8.0	%
Tier 1 capital (to average assets)	$	1,593		66.7	%	$	96		4.0	%	$	119		5.0	%
December 31, 2014
Total capital (to risk weighted assets)	$	775		142.0	%	$	44		8.0	%	$	56		10.0	%
Tier 1 capital (to risk weighted assets)	$	775		142.0	%	$	22		4.0	%	$	33		6.0	%
Tier 1 capital (to average assets)	$	775		72.1	%	$	43		4.0	%	$	54		5.0	%

(1)	Ratios and amounts as of December 31, 2015 reflect the adoption of revised capital rules effective January 1, 2015.

Broker-dealers. BlackRock Investments, LLC and BlackRock Execution Services are registered broker-dealers and wholly owned subsidiaries of BlackRock that are subject to the Uniform Net Capital requirements under the Securities Exchange Act of 1934, which requires maintenance of certain minimum net capital levels.

Capital Requirements. At both December 31, 2015 and 2014, the Company was required to maintain approximately $1.1 billion in net capital in certain regulated subsidiaries, including BTC, entities regulated by the Financial Conduct Authority and Prudential Regulation Authority in the United Kingdom, and the Company’s broker-dealers. The Company was in compliance with all applicable regulatory net capital requirements.