Basel III Regulatory Capital Disclosures
March 31, 2024
Table of Contents
Components of Capital | 10 |
Capital Adequacy - Standardized Risk-Weighted Assets | 10 |
Capital Adequacy - Capital Ratios | 11 |
Credit Risk | 11 |
Credit Exposure by Geographic Concentrations | 12 |
Securitizations | 13 |
Market Risk | 14 |
Equities Not Subject to the Market Risk Capital Rule | 15 |
Supplementary Leverage Ratio | 15 |
INTRODUCTION
The Charles Schwab Corporation (CSC) is a savings and loan holding company. CSC engages, through its subsidiaries (collectively referred to as Schwab or the Company), in wealth management, securities brokerage, banking, asset management, custody, and financial advisory services.
Principal business subsidiaries of CSC include the following:
- Charles Schwab & Co., Inc. (CS&Co), incorporated in 1971, a securities broker-dealer;
- TD Ameritrade, Inc., an introducing securities broker-dealer;
- TD Ameritrade Clearing, Inc. (TDAC), a securities broker-dealer that provides trade execution and clearing services to TD Ameritrade, Inc.;
- Charles Schwab Bank, SSB (CSB), our principal banking entity; and
- Charles Schwab Investment Management, Inc. (CSIM), the investment advisor for Schwab's proprietary mutual funds (Schwab Funds®) and for Schwab's exchange-traded funds (Schwab ETFs™).
Schwab provides financial services to individuals and institutional clients through two segments - Investor Services and Advisor Services. The Investor Services segment provides retail brokerage, investment advisory, and banking and trust services to individual investors, and retirement plan services, as well as other corporate brokerage services, to businesses and their employees. The Advisor Services segment provides custodial, trading, banking and trust, and support services, as well as retirement business services, to independent registered investment advisors (RIAs), independent retirement advisors, and recordkeepers.
The basis of consolidation that CSC uses for regulatory reporting is consistent with the basis used for reporting under generally accepted accounting principles in the U.S. (U.S. GAAP) as established by the Financial Accounting Standards Board.
OVERVIEW
This document, and certain of Schwab's public filings, present the regulatory capital disclosures in compliance with Basel III as set forth in 12 C.F.R. §217.63 - Disclosures by institutions regulated by the Federal Reserve Board ("Federal Reserve") and 12 C.F.R. §217.173 (c) (collectively referred to as the Rules). Schwab's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (Form 10-K) filed with the Securities and Exchange Commission (SEC) and its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2024 (Form 10-Q) filed with the SEC contains management's discussion of the overall corporate risk profile of Schwab and related management strategies. These Basel III Regulatory Capital Disclosures should be read in conjunction with the Form 10-K, the Form 10-Q, the Consolidated Financial Statements for Bank Holding Companies dated March 31, 2024 (FR Y-9C), the Regulatory Capital Reporting for Institutions Subject to the Advanced Capital Adequacy Framework dated March 31, 2024 (FFIEC 101), the Market Risk Regulatory Report for Institutions Subject to the Market Risk Capital Rule dated March 31, 2024 (FFIEC 102), and the Consolidated Reports of Condition and Income for a Bank with Domestic and Foreign Offices for the period ended March 31, 2024 (FFIEC 031). Schwab's Disclosure Matrix (see pages 4-9) specifies where the disclosures required by the Rules are located.
CURRENT REGULATORY AND OTHER DEVELOPMENTS
In October 2019, the Federal Reserve, Office of the Comptroller of the Currency (OCC), and Federal Deposit Insurance Corporation (FDIC) jointly adopted a final rule which became effective on December 31, 2019 (interagency regulatory capital and liquidity rules) that revised the regulatory capital and liquidity requirements for large U.S. banking organizations with $100 billion or more in total consolidated assets. The rules established four risk-based categories for determining the regulatory capital and liquidity requirements applicable to these institutions based on their total assets, cross-jurisdictional activity, weighted short-term wholesale funding, nonbank assets, and off-balance sheet exposure. CSC is generally subject to the requirements under Category III based on its total consolidated assets of between $250 billion and less than $700 billion and having less than $75 billion in cross-jurisdictional activity.
Capital requirements for Category III banking organizations include the generally applicable risk-based capital and Tier 1 leverage ratio requirements (the "standardized approach" framework), the minimum 3.0% supplementary leverage ratio, the countercyclical capital buffer, which is currently zero, and for large bank holding companies, the stress capital buffer requirement which applies to risk-based capital ratios (CET1, Tier 1 Capital, and Total Capital). Under the currently applicable revised capital requirements, Category III organizations are not subject to the "advanced approaches" regulatory capital framework and are permitted to opt out of including most components of accumulated other comprehensive income (AOCI) in their regulatory capital calculations. CSC made this opt-out election as of January 1, 2020 to exclude most components of AOCI from its regulatory capital.
1
On March 16, 2021, CSC's declaration electing to be treated as a Financial Holding Company (FHC) was deemed effective by the Federal Reserve. In addition to the activities that savings and loan holding companies that have not elected to be treated as an FHC are permitted to conduct, the Company may now also engage in activities that are financial in nature or incidental to a financial activity (FHC Activities), including securities underwriting, dealing and making markets in securities, various insurance underwriting activities, and making merchant banking investments in non-financial companies.
In June 2023, CSC completed the Federal Reserve's 2023 Comprehensive Capital Analysis and Review (CCAR) stress test process. This resulted in a stress capital buffer of 2.5%, which is the minimum requirement. As a result, CSC's minimum Common Equity Tier 1 Risk-Based Capital ratio requirement, inclusive of the stress capital buffer, continues to be 7.0%.
Certain banking organizations with trading assets and trading liabilities above certain thresholds or greater than a certain percent of total assets are subject to the Market Risk Rule and must adjust their risk-based capital ratios to reflect a measure of market risk of their trading activities, perform certain calculations to calculate a measure of market risk, including back-testing, and make regular quantitative and qualitative public disclosures. CSC is subject to the Market Risk Rule and related required disclosures. Pursuant to the Market Risk Rule, CSC incorporates adjustments to its risk-weighted assets related to de minimis positions, which did not significantly impact our risk-based capital ratios nor have a current impact on CSC's activities.
In July 2023, the Board of Governors of the Federal Reserve System, in collaboration with the OCC and the FDIC, issued a notice of proposed rulemaking for amendments to the regulatory capital rule. Among other things, the proposed rule would require us to include AOCI in regulatory capital and to calculate our risk-weighted assets using a revised risk-based approach, a component of which is based on operational risk, phased in over a three-year transition period beginning July 1, 2025 and ending July 1, 2028. The comment period for the proposed rules ended January 16, 2024. The impact of the proposal would be significant to Schwab, as the proposed rules could increase regulatory capital requirements for consolidated CSC and our banking subsidiaries.
Following are links to the referenced public filings:
Filing | Link to Filing |
2023 Form 10-K | https://www.sec.gov/ixviewer/ix.html?doc=/Archives/edgar/ |
data/0000316709/000031670924000018/schw-20231231.htm | |
March 31, 2024 Form 10-Q | https://www.sec.gov/ix?doc=/Archives/edgar/ |
data/0000316709/000031670924000044/schw-20240331.htm | |
Consolidated Financial Statements for Bank | https://www.ffiec.gov/npw/Institution/Profile/1026632?dt=20210316 |
Holding Companies - FR Y-9C dated March | Note search terms below: |
31, 2024 | Report = Consolidated Financial Statements for BHCs (FR Y-9C) |
Report Date = 03/31/2024 | |
Regulatory Capital Reporting for Institutions | https://www.ffiec.gov/npw/Institution/Profile/1026632?dt=20210316 |
Subject to the Advanced Capital Adequacy | Note search terms below: |
Framework - FFIEC 101 dated March 31, | Report = Regulatory Capital Reporting for Institutions Subject to the Advanced |
2024 | Capital Adequacy Framework (FFIEC 101) |
Report Date = 03/31/2024 | |
Market Risk Regulatory Report for | https://www.ffiec.gov/npw/Institution/Profile/1026632?dt=20210316 |
Institutions Subject to the Market Risk | Note search terms below: |
Capital Rule - FFIEC 102 dated March 31, | Report = Market Risk Regulatory Report for Institutions Subject to the Market Risk |
2024 | Capital Rule (FFIEC 102) |
Report Date = 03/31/2024 | |
Consolidated Reports of Condition and | https://cdr.ffiec.gov/public/ManageFacsimiles.aspx |
Income for a Bank with Domestic and | Note search terms below: |
Foreign Offices - FFIEC 031 for the quarter | Report = Call |
ended March 31, 2024 | Report Date = 03/31/2024 |
Institution Name = Charles Schwab Bank, SSB |
2
Consolidated Reports of Condition and | https://cdr.ffiec.gov/public/ManageFacsimiles.aspx |
Income for a Bank with Domestic and | Note search terms below: |
Foreign Offices - FFIEC 031 for the quarter | Report = Call |
ended March 31, 2024 | Report Date = 03/31/2024 |
Institution Name = Charles Schwab Premier Bank, SSB | |
Consolidated Reports of Condition and | https://cdr.ffiec.gov/public/ManageFacsimiles.aspx |
Income for a Bank with Domestic and | Note search terms below: |
Foreign Offices - FFIEC 031 for the quarter | Report = Call |
ended March 31, 2024 | Report Date = 03/31/2024 |
Institution Name = Charles Schwab Trust Bank |
3
DISCLOSURE MATRIX
Table | Disclosure Requirement | Disclosure Location | Disclosure |
Page | |||
Scope of Application (Table 1) | |||
Qualitative: | The name of the top corporate entity in the group to which subpart D of | Basel III Regulatory Capital Disclosures: | |
(a) | this part applies. | Introduction | Pg. 1 |
(b) | A brief description of the differences in the basis for consolidating | Basel III Regulatory Capital Disclosures: | |
entities for accounting and regulatory purposes, with a description of | Introduction | Pg. 1 | |
those entities: |
- That are fully consolidated;
- That are deconsolidated and deducted from total capital;
- For which the total capital requirement is deducted; and
- That are neither consolidated nor deducted (for example, where the investment in the entity is assigned a risk weight in accordance with this subpart).
(c) | Any restrictions, or other major impediments, on transfer of funds or total | Form 10-Q |
capital within the group. | MD&A - Capital Management | |
Note 17 - Regulatory Requirements | ||
(d) | The aggregate amount of surplus capital of insurance subsidiaries | Not applicable. The Company does not have any insurance |
included in the total capital of the consolidated group. | subsidiaries. | |
(e) | The aggregate amount by which actual total capital is less than the | Not applicable. The Company does not have any |
minimum total capital requirement in all subsidiaries, with total capital | subsidiaries with total capital requirements where total | |
requirements and the name(s) of the subsidiaries with such deficiencies. | capital is less than the minimum requirement. |
Capital Structure (Table 2)
Qualitative: | Summary information on the terms and conditions of the main features of | Form 10-Q | |
(a) | all regulatory capital instruments. | MD&A - Capital Management | |
Condensed Consolidated Balance Sheets | |||
Note 14 - Stockholders' Equity | |||
Quantitative: | The amount of common equity tier 1 capital, with separate disclosure of: | FR Y-9C | |
(b) | (1) | Common stock and related surplus; | Schedule HC-R - Regulatory Capital |
(2) | Retained earnings; | FFIEC 031 | |
(3) | Common equity minority interest; | Schedule RC-R - Regulatory Capital | |
(4) | Accumulated other comprehensive income (AOCI); and | ||
(5) | Regulatory adjustments and deductions made to common equity | ||
tier 1 capital. | |||
(c) | The amount of tier 1 capital, with separate disclosure of: | Basel III Regulatory Capital Disclosures: | |
(1) | Additional tier 1 capital elements, including additional tier 1 | Components of Capital | |
capital instruments and tier 1 minority interest not included in | FR Y-9C | ||
common equity tier 1 capital; and | Schedule HC-R - Regulatory Capital | ||
(2) | Regulatory adjustments and deductions made to tier 1 capital. | FFIEC 031 | |
Schedule RC-R - Regulatory Capital | |||
(d) | The amount of total capital, with separate disclosure of: | Basel III Regulatory Capital Disclosures: | |
(1) | Tier 2 capital elements, including tier 2 capital instruments and | Components of Capital | |
total capital minority interest not included in tier 1 capital; and | FR Y-9C | ||
(2) | Regulatory adjustments and deductions made to total capital. | Schedule HC-R - Regulatory Capital | |
FFIEC 031 | |||
Schedule RC-R - Regulatory Capital | |||
Pg. 9
Pg. 9
4
Table | Disclosure Requirement | Disclosure Location | Disclosure | |
Page | ||||
Capital Adequacy (Table 3) | ||||
Qualitative: | A summary discussion of the Board-regulated institution's approach to | Form 10-Q | ||
(a) | assessing the adequacy of its capital to support current and future | MD&A - Capital Management | ||
activities. | ||||
Quantitative: | Risk-weighted assets for: | Basel III Regulatory Capital Disclosures: | ||
(b) | (1) | Exposures to sovereign entities; | Capital Adequacy | Pg. 9 |
(2) | Exposures to certain supranational entities and MDBs; | |||
(3) | Exposures to depository institutions, foreign banks, and credit | |||
unions; | ||||
(4) | Exposures to PSEs; | |||
(5) | Corporate exposures; | |||
(6) | Residential mortgage exposures; | |||
(7) | Statutory multifamily mortgages and pre-sold construction loans; | |||
(8) | HVCRE loans; | |||
(9) | Past due loans; | |||
(10) Other assets; | ||||
(11) Cleared transactions; | ||||
(12) Default fund contributions; | ||||
(13) Unsettled transactions; | ||||
(14) Securitization exposures; and | ||||
(15) Equity exposures. | ||||
(c) | Standardized market risk-weighted assets as calculated under subpart F of | Basel III Regulatory Capital Disclosures: | ||
this part. | Capital Adequacy | Pg. 9 | ||
(d) | Common equity tier 1, tier 1 and total risk-based capital ratios: | Basel III Regulatory Capital Disclosures: | ||
(1) | For the top consolidated group; and | Capital Adequacy | Pg. 10 | |
(2) | For each depository institution subsidiary. | FR Y-9C | ||
Schedule HC-R - Regulatory Capital | ||||
FFIEC 031* | ||||
Schedule RC-R Part I - Regulatory Capital | ||||
(e) | Total standardized risk-weighted assets. | Basel III Regulatory Capital Disclosures: | ||
Capital Adequacy | Pg. 9 | |||
FR Y-9C | ||||
Schedule HC-R - Regulatory Capital | ||||
FFIEC 031 | ||||
Schedule RC-R Part I & II- Regulatory Capital | ||||
Capital Conservation Buffer (Table 4)
Quantitative: | At least quarterly, the Board-regulated institution must calculate and | FR Y-9C |
(a) | publicly disclose the capital conservation buffer as described under | Schedule HC-R - Regulatory Capital |
§ 217.11. | FFIEC 031 | |
Schedule RC-R Part I - Regulatory Capital | ||
(b) | At least quarterly, the Board-regulated institution must calculate and | FR Y-9C |
publicly disclose the eligible retained income of the Board-regulated | Schedule HC-R - Regulatory Capital | |
institution, as described under § 217.11. | FFIEC 031 | |
Schedule RC-R Part I - Regulatory Capital | ||
(c) | At least quarterly, the Board-regulated institution must calculate and | Basel III Regulatory Capital Disclosures: |
publicly disclose any limitations it has on distributions and discretionary | Capital Adequacy | |
bonus payments resulting from the capital conservation buffer framework | FFIEC 031 | |
described under § 217.11, including the maximum payout amount for the | ||
quarter. | Schedule RC-R Part I - Regulatory Capital | |
Pg. 10
- The FFIEC 031 report for this disclosure requirement is applicable for all CSC-owned depository subsidiaries: Charles Schwab Bank, SSB, Charles Schwab Premier Bank, SSB and Charles Schwab Trust Bank.
5
Table
Disclosure Requirement
Disclosure Location
Disclosure
Page
Credit Risk: General Disclosures (Table 5)
Qualitative: | The general qualitative disclosure requirement with respect to credit risk | Form 10-K |
(a) | (excluding counterparty credit risk disclosed in accordance with Table 6), | MD&A - Risk Management |
including the: | Note 2 - Summary of Significant Accounting Policies |
- Policy for determining past due or delinquency status;
- Policy for placing loans on nonaccrual;
- Policy for returning loans to accrual status;
- Definition of and policy for identifying impaired loans (for financial accounting purposes);
- Description of the methodology that the Board-regulated institution uses to estimate its allowance for loan and lease losses, including statistical methods used where applicable;
- Policy for charging-off uncollectible amounts; and
- Discussion of the Board-regulated institution's credit risk management policy.
Quantitative: | Total credit risk exposures and average credit risk exposures, after | Basel III Regulatory Capital Disclosures: | ||
(b) | accounting offsets in accordance with GAAP, without taking into account | Credit Risk | Pg. 10-11 | |
the effects of credit risk mitigation techniques (for example, collateral and | Form 10-Q | |||
netting not permitted under GAAP), over the period categorized by major | ||||
types of credit exposure. For example, Board-regulated institutions could | MD&A - Risk Management | |||
use categories similar to that used for financial statement purposes. Such | Note 4 - Investment Securities | |||
categories might include, for instance | Note 5 - Bank Loans and Related Allowance for Credit | |||
(1) | Loans, off-balance sheet commitments, and other non-derivative | Losses | ||
off-balance sheet exposures; | Note 9 - Commitments and Contingencies | |||
(2) | Debt securities; and | Note 11 - Derivative Instruments and Hedging Activities | ||
(3) | OTC derivatives. | Note 12 - Financial Instruments Subject to Off-Balance | ||
Sheet Credit Risk | ||||
(c) | Geographic distribution of exposures, categorized in significant areas by | Basel III Regulatory Capital Disclosures: | ||
major types of credit exposure. | Credit Risk, Credit Exposure By Geographic Concentrations | Pg. 10-12 | ||
(d) | Industry or counterparty type distribution of exposures, categorized by | Basel III Regulatory Capital Disclosures: | Pg. 10-11 | |
major types of credit exposure | Credit Risk | |||
(e) | By major industry or counterparty type: | Form 10-Q | ||
(1) | Amount of impaired loans for which there was a related allowance | Note 5 - Bank Loans and Related Allowance for Credit | ||
under GAAP; | Losses | |||
(2) | Amount of impaired loans for which there was no related allowance | |||
under GAAP; | ||||
(3) | Amount of loans past due 90 days and on nonaccrual; | |||
(4) | Amount of loans past due 90 days and still accruing; | |||
(5) | The balance in the allowance for loan and lease losses at the end of | |||
each period, disaggregated on the basis of the Board-regulated | ||||
institution's impairment method. To disaggregate the information | ||||
required on the basis of impairment methodology, an entity shall | ||||
separately disclose the amounts based on the requirements in | ||||
GAAP; and | ||||
(6) | Charge-offs during the period. | |||
(f) | Amount of impaired loans and, if available, the amount of past due loans | Basel III Regulatory Capital Disclosures: | ||
categorized by significant geographic areas including, if practical, the | Credit Exposure By Geographic Concentrations | Pg. 11-12 | ||
amounts of allowances related to each geographical area, further | Form 10-Q | |||
categorized as required by GAAP. | Note 5 - Bank Loans and Related Allowance for Credit | |||
Losses | ||||
FR Y-9C | ||||
Schedule HC-N - Past Due and Nonaccrual Loans, Leases, | ||||
and Other Assets | ||||
(g) | Reconciliation of changes in ACL. | Form 10-Q | ||
Note 5 - Bank Loans and Related Allowance for Credit | ||||
Losses | ||||
FR Y-9C | ||||
Schedule HI-B - Charge-Offs and Recoveries on Loans and | ||||
Leases and Changes in Allowance for Loan and Lease | ||||
Losses | ||||
FFIEC 031 | ||||
Schedule RI-B Part II. Changes in Allowance for Loan and | ||||
Lease Losses | ||||
(h) | Remaining contractual maturity delineation (for example, one year or less) | Basel III Regulatory Capital Disclosures: | ||
of the whole portfolio, categorized by credit exposure. | Credit Risk | Pg. 11 | ||
FFIEC 031 | ||||
Schedule RC-C - Loans and Financing Receivables |
6
Table
Disclosure Requirement
Disclosure Location
Disclosure
Page
General Disclosure for Counterparty Credit Risk-Related Exposures (Table 6)
Qualitative: | The general qualitative disclosure requirement with respect to OTC | Form 10-Q | |
(a) | derivatives, eligible margin loans, and repo-style transactions, including a | Note 9 - Commitments and Contingencies | |
discussion of: | Note 11 - Derivative Instruments and Hedging Activities | ||
(1) | The methodology used to assign credit limits for counterparty | Note 12 - Financial Instruments Subject to Off-Balance | |
(2) | credit exposures; | Sheet Credit Risk | |
Policies for securing collateral, valuing and managing collateral, | |||
and establishing credit reserves; | Form 10-K | ||
(3) | The primary types of collateral taken; and | MD&A - Risk Management | |
(4) | The impact of the amount of collateral the Board-regulated | Note 2 - Summary of Significant Accounting Policies | |
institution would have to provide given a deterioration in the | |||
Board-regulated institution's own creditworthiness. | (4) Not applicable. CSC does not have any contingent | ||
payment obligations that would result from a ratings | |||
downgrade | |||
Quantitative: | Gross positive fair value of contracts, collateral held (including type, for | Form 10-Q |
- example, cash, government securities), and net unsecured credit exposure. Note 11 - Derivative Instruments and Hedging Activities Note 12 - Financial Instruments Subject to Off-Balance Sheet Credit Risk
A Board-regulated institution must disclose the notional value of credit | ||||
derivative hedges purchased for counterparty credit risk protection and the | Not applicable. CSC does not hold credit derivatives | |||
distribution of current credit exposure by exposure type. | ||||
(c) | Notional amount of purchased and sold credit derivatives, segregated | Not applicable. The Company does not transact in credit | ||
between use for the Board-regulated institution's own credit portfolio and | derivatives | |||
in its intermediation activities, including the distribution of the credit | ||||
derivative products used, categorized further by protection bought and sold | ||||
within each product group. | ||||
Credit Risk Mitigation (Table 7) | ||||
Qualitative: | The general qualitative disclosure requirement with respect to credit risk | Form 10-Q | ||
(a) | mitigation, including: | MD&A - Risk Management | ||
(1) | Policies and processes for collateral valuation and management; | Note 4 - Investment Securities | ||
(2) | A description of the main types of collateral taken by the Board- | Note 5 - Bank Loans and Related Allowance for Credit | ||
regulated institution; | Losses | |||
(3) | The main types of guarantors/credit derivative counterparties and | Note 11 - Derivative Instruments and Hedging Activities | ||
their creditworthiness; and | Note 12 - Financial Instruments Subject to Off-Balance | |||
(4) | Information about (market or credit) risk concentrations with | Sheet Credit Risk | ||
respect to credit risk mitigation. | Note 13 - Fair Values of Assets and Liabilities | |||
Form 10-K | ||||
MD&A - Risk Management | ||||
Note 2 - Summary of Significant Accounting Policies | ||||
Quantitative: | For each separately disclosed credit risk portfolio, the total exposure that is | Form 10-Q | ||
(b) | covered by eligible financial collateral, and after the application of | Note 11 - Derivative Instruments and Hedging Activities | ||
haircuts. | Note 12 - Financial Instruments Subject to Off-Balance | |||
Sheet Credit Risk | ||||
(c) | For each separately disclosed portfolio, the total exposure that is covered | Not applicable. CSC does not hold credit derivatives | ||
by guarantees/credit derivatives and the risk-weighted asset amount | ||||
associated with that exposure. |
7
Table | Disclosure Requirement | Disclosure Location | Disclosure |
Page | |||
Securitization | (Table 8) | ||
Qualitative: | The general qualitative disclosure requirement with respect to a | Basel III Regulatory Capital Disclosures: | Pg. 12-13 |
(a) | securitization (including synthetic securitizations), including a discussion | Securitizations | |
of: |
- The Board-regulated institution's objectives for securitizing assets, including the extent to which these activities transfer credit risk of the underlying exposures away from Board-regulated institution to other entities and including the type of risks assumed and retained with resecuritization activity;
- The nature of the risks (e.g. liquidity risk) inherent in the securitized assets;
- The roles played by the Board-regulated institution in the securitization process and an indication of the extent of the Board- regulated institution's involvement in each of them;
- The processes in place to monitor changes in the credit and market risk of securitization exposures including how those processes differ for resecuritization exposures;
- The Board-regulated institution's policy for mitigating the credit risk retained through securitization and resecuritization exposures; and
- The risk-based capital approaches that the Board-regulated institution follows for its securitization exposures including the type of securitization exposure to which each approach applies.
(b) | A list of: | Not applicable. CSC does not securitize assets. |
- The type of securitization SPEs that the Board-regulated institution, as sponsor, uses to securitize third-party exposures. The Board- regulated institution must indicate whether it has exposure to these SPEs, either on- or off-balance sheet; an
- Affiliated entities
- That the Board-regulated institution manages or advises; and
- That invest either in the securitization exposures that the Board- regulated institution has securitized or in securitization SPEs that the Board-regulated institution sponsors.
(c) | Summary of the Board-regulated institution's accounting policies for | Not applicable. CSC does not securitize assets. | |
securitization activities, including: | |||
(1) | Whether the transactions are treated as sales or financings; | ||
(2) | Recognition of gain-on-sale; | ||
(3) | Methods and key assumptions applied in valuing retained or | ||
purchased interests; | |||
(4) | Changes in methods and key assumptions from the previous | ||
period for valuing retained interests and impact of the changes; | |||
(5) | Treatment of synthetic securitizations; | ||
(6) | How exposures intended to be securitized are valued and whether | ||
they are recorded under subpart D of this part; and | |||
(7) | Policies for recognizing liabilities on the balance sheet for | ||
arrangements that could require the Board-regulated institution to | |||
provide financial support for securitized assets. | |||
(d) | An explanation of significant changes to any quantitative information | Not applicable. CSC does not securitize assets. | |
since the last reporting period. | |||
Quantitative: | The total outstanding exposures securitized by the Board-regulated | Not applicable. CSC does not securitize assets. |
- institution in securitizations that meet the operational criteria provided in § 217.41 (categorized into traditional and synthetic securitizations), by exposure type, separately for securitizations of third-party exposures for which the bank acts only as sponsor.
(f) | For exposures securitized by Board-regulated institution in securitizations | Not applicable. CSC does not securitize assets. | ||
that meet the operational criteria in § 217.41: | ||||
(1) | Amount of securitized assets that are impaired/past due | |||
categorized by exposure type; and | ||||
(2) | Losses recognized by Board-regulated institution during the | |||
current period categorized by exposure type. | ||||
(g) | The total amount of outstanding exposures intended to be securitized | Not applicable. CSC does not securitize assets. | ||
categorized by exposure type. | ||||
(h) | Aggregate amount of: | Basel III Regulatory Capital Disclosures: | ||
(1) | On-balance sheet securitization exposures retained or purchased | Securitizations | Pg. 13 | |
categorized by exposure type; and | FR Y-9C | |||
(2) | Off-balance sheet securitization exposures categorized by exposure | |||
type. | Schedule HC-R - Regulatory Capital | |||
FFIEC 031 | ||||
Schedule RC-R Part II - Regulatory Capital |
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The Charles Schwab Corporation published this content on 15 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 May 2024 22:21:03 UTC.