Code of Federal Regulations (alpha)

CFR /  Title 12  /  Part 3  /  Sec. 3.173 Disclosures by certain advanced approaches national banks

(a) Except as provided in Sec. 3.172(b), a national bank or Federal savings association described in Sec. 3.172(b) must make the disclosures described in Tables 1 through 13 to Sec. 3.173. The national bank or Federal savings association must make the disclosures required under Tables 1 through 12 publicly available for each of the last three years (that is, twelve quarters) or such shorter period beginning on January 1, 2014. The national bank or Federal savings association must make the disclosures required under Table 13 publicly available beginning on January 1, 2015.

(a).............. The name of the top

corporate entity in

the group to which

subpart E of this

part applies.

(b).............. A brief description

of the differences

in the basis for

consolidating

entities\1\ for

accounting and

regulatory purposes,

with a description

of those entities:

(1) That are fully

consolidated;

(2) That are

deconsolidated and

deducted from total

capital;

(3) For which the

total capital

requirement is

deducted; and

(4) 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 capital within

the group.Quantitative disclosures...... (d).............. The aggregate amount

of surplus capital

of insurance

subsidiaries

included in the

total capital of the

consolidated group.

(e).............. The aggregate amount

by which actual

total capital is

less than the

minimum total

capital requirement

in all subsidiaries,

with total capital

requirements and the

name(s) of the

subsidiaries with

such deficiencies.------------------------------------------------------------------------\1\ Such entities include securities, insurance and other financial

subsidiaries, commercial subsidiaries (where permitted), and

significant minority equity investments in insurance, financial and

commercial entities.

(a).............. Summary information

on the terms and

conditions of the

main features of all

regulatory capital

instruments.Quantitative disclosures...... (b).............. The amount of common

equity tier 1

capital, with

separate disclosure

of:

(1) Common stock and

related surplus;

(2) Retained

earnings;

(3) Common equity

minority interest;

(4) AOCI (net of tax)

and other reserves;

and

(5) Regulatory

adjustments and

deductions made to

common equity tier 1

capital.

(c).............. The amount of tier 1

capital, with

separate disclosure

of:

(1) Additional tier 1

capital elements,

including additional

tier 1 capital

instruments and tier

1 minority interest

not included in

common equity tier 1

capital; and

(2) Regulatory

adjustments and

deductions made to

tier 1 capital.

(d).............. The amount of total

capital, with

separate disclosure

of:

(1) Tier 2 capital

elements, including

tier 2 capital

instruments and

total capital

minority interest

not included in tier

1 capital; and

(2) Regulatory

adjustments and

deductions made to

total capital.------------------------------------------------------------------------

(a).............. A summary discussion

of the national

bank's or Federal

savings

association's

approach to

assessing the

adequacy of its

capital to support

current and future

activities.Quantitative disclosures...... (b).............. Risk-weighted assets

for credit risk

from:

(1) Wholesale

exposures;

(2) Residential

mortgage exposures;

(3) Qualifying

revolving exposures;

(4) Other retail

exposures;

(5) Securitization

exposures;

(6) Equity exposures:

(7) Equity exposures

subject to the

simple risk weight

approach; and

(8) Equity exposures

subject to the

internal models

approach.

(c).............. Standardized market

risk-weighted assets

and advanced market

risk-weighted assets

as calculated under

subpart F of this

part:

(1) Standardized

approach for

specific risk; and

(2) Internal models

approach for

specific risk.

(d).............. Risk-weighted assets

for operational

risk.

(e).............. Common equity tier 1,

tier 1 and total

risk-based capital

ratios:

(1) For the top

consolidated group;

and

(2) For each

depository

institution

subsidiary.

(f).............. Total risk-weighted

assets.------------------------------------------------------------------------ Table 4 to Sec. 3.173--Capital Conservation and Countercyclical Capital

(a).............. The national bank or

Federal savings

association must

publicly disclose

the geographic

breakdown of its

private sector

credit exposures

used in the

calculation of the

countercyclical

capital buffer.Quantitative disclosures...... (b).............. At least quarterly,

the national bank or

Federal savings

association must

calculate and

publicly disclose

the capital

conservation buffer

and the

countercyclical

capital buffer as

described under Sec.

3.11 of subpart B.

(c).............. At least quarterly,

the national bank or

Federal savings

association must

calculate and

publicly disclose

the buffer retained

income of the

national bank or

Federal savings

association, as

described under Sec.

3.11 of subpart B.

(d).............. At least quarterly,

the national bank or

Federal savings

association must

calculate and

publicly disclose

any limitations it

has on distributions

and discretionary

bonus payments

resulting from the

capital conservation

buffer and the

countercyclical

capital buffer

framework described

under Sec. 3.11 of

subpart B, including

the maximum payout

amount for the

quarter.------------------------------------------------------------------------

(b) General qualitative disclosure requirement. For each separate risk area described in Tables 5 through 12 to Sec. 3.173, the national bank or Federal savings association must describe its risk management objectives and policies, including:

(1) Strategies and processes;

(2) The structure and organization of the relevant risk management function;

(3) The scope and nature of risk reporting and/or measurement systems; and

(4) Policies for hedging and/or mitigating risk and strategies and processes for monitoring the continuing effectiveness of hedges/mitigants.

(a).............. The general

qualitative

disclosure

requirement with

respect to credit

risk (excluding

counterparty credit

risk disclosed in

accordance with

Table 7 to Sec.

3.173), including:

(1) Policy for

determining past due

or delinquency

status;

(2) Policy for

placing loans on

nonaccrual;

(3) Policy for

returning loans to

accrual status;

(4) Definition of and

policy for

identifying impaired

loans (for financial

accounting

purposes).

(5) Description of

the methodology that

the entity uses to

estimate its

allowance for loan

and lease losses,

including

statistical methods

used where

applicable;

(6) Policy for

charging-off

uncollectible

amounts; and

(7) Discussion of the

national bank's or

Federal savings

association's credit

risk management

policyQuantitative disclosures...... (b).............. Total credit risk

exposures and

average credit risk

exposures, after

accounting offsets

in accordance with

GAAP,\2\ without

taking into account

the effects of

credit risk

mitigation

techniques (for

example, collateral

and netting not

permitted under

GAAP), over the

period categorized

by major types of

credit exposure. For

example, national

banks or Federal

savings associations

could use categories

similar to that used

for financial

statement purposes.

Such categories

might include, for

instance:

(1) Loans, off-

balance sheet

commitments, and

other non-derivative

off-balance sheet

exposures;

(2) Debt securities;

and

(3) OTC derivatives.

(c).............. Geographic \3\

distribution of

exposures,

categorized in

significant areas by

major types of

credit exposure.

(d).............. Industry or

counterparty type

distribution of

exposures,

categorized by major

types of credit

exposure.

(e).............. By major industry or

counterparty type:

(1) Amount of

impaired loans for

which there was a

related allowance

under GAAP;

(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; \4\

(5) The balance in

the allowance for

loan and lease

losses at the end of

each period,

disaggregated on the

basis of the

entity'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 categorized by

significant

geographic areas

including, if

practical, the

amounts of

allowances related

to each geographical

area,\5\ further

categorized as

required by GAAP.

(g).............. Reconciliation of

changes in ALLL.\6\

(h).............. Remaining contractual

maturity breakdown

(for example, one

year or less) of the

whole portfolio,

categorized by

credit exposure.------------------------------------------------------------------------\1\ Table 5 to Sec. 3.173 does not cover equity exposures, which should

be reported in Table 9.\2\ See, for example, ASC Topic 815-10 and 210-20 as they may be amended

from time to time.\3\ Geographical areas may comprise individual countries, groups of

countries, or regions within countries. A national bank or Federal

savings association might choose to define the geographical areas

based on the way the company's portfolio is geographically managed.

The criteria used to allocate the loans to geographical areas must be

specified.\4\ A national bank or Federal savings association is encouraged also to

provide an analysis of the aging of past-due loans.\5\ The portion of the general allowance that is not allocated to a

geographical area should be disclosed separately.\6\ The reconciliation should include the following: A description of

the allowance; the opening balance of the allowance; charge-offs taken

against the allowance during the period; amounts provided (or

reversed) for estimated probable loan losses during the period; any

other adjustments (for example, exchange rate differences, business

combinations, acquisitions and disposals of subsidiaries), including

transfers between allowances; and the closing balance of the

allowance. Charge-offs and recoveries that have been recorded directly

to the income statement should be disclosed separately.

Table 6 to Sec. 3.173--Credit Risk: Disclosures for Portfolios Subject

(a).............. Explanation and

review of the:

(1) Structure of

internal rating

systems and relation

between internal and

external ratings;

(2) Use of risk

parameter estimates

other than for

regulatory capital

purposes;

(3) Process for

managing and

recognizing credit

risk mitigation (see

Table 8 to Sec.

3.173); and

(4) Control

mechanisms for the

rating system,

including discussion

of independence,

accountability, and

rating systems

review.

(b).............. Description of the

internal ratings

process, provided

separately for the

following:

(1) Wholesale

category;

(2) Retail

subcategories;

(i) Residential

mortgage exposures;

(ii) Qualifying

revolving exposures;

and

(iii) Other retail

exposures.

For each category and

subcategory above

the description

should include:

(A) The types of

exposure included in

the category/

subcategories; and

(B) The definitions,

methods and data for

estimation and

validation of PD,

LGD, and EAD,

including

assumptions employed

in the derivation of

(1) For wholesale

assessment. exposures, present

the following

information across a

sufficient number of

PD grades (including

default) to allow

for a meaningful

differentiation of

credit risk: \2\

(i) Total EAD; \3\

(ii) Exposure-

weighted average LGD

(percentage);

(iii) Exposure-

weighted average

risk weight; and

(iv) Amount of

undrawn commitments

and exposure-

weighted average EAD

including average

drawdowns prior to

default for

wholesale exposures.

(2) For each retail

subcategory, present

the disclosures

outlined above

across a sufficient

number of segments

to allow for a

meaningful

differentiation of

credit risk.Quantitative disclosures: (d).............. Actual losses in the

historical results. preceding period for

each category and

subcategory and how

this differs from

past experience. A

discussion of the

factors that

impacted the loss

experience in the

preceding period--

for example, has the

national bank or

Federal savings

association

experienced higher

than average default

rates, loss rates or

EADs.

(e).............. The national bank's

or Federal savings

association's

estimates compared

against actual

outcomes over a

longer period.\4\ At

a minimum, this

should include

information on

estimates of losses

against actual

losses in the

wholesale category

and each retail

subcategory over a

period sufficient to

allow for a

meaningful

assessment of the

performance of the

internal rating

processes for each

category/

subcategory.\5\

Where appropriate,

the national bank or

Federal savings

association should

further decompose

this to provide

analysis of PD, LGD,

and EAD outcomes

against estimates

provided in the

quantitative risk

assessment

disclosures

above.\6\------------------------------------------------------------------------\1\ This disclosure item does not require a detailed description of the

model in full--it should provide the reader with a broad overview of

the model approach, describing definitions of the variables and

methods for estimating and validating those variables set out in the

quantitative risk disclosures below. This should be done for each of

the four category/subcategories. The national bank or Federal savings

association must disclose any significant differences in approach to

estimating these variables within each category/subcategories.\2\ The PD, LGD and EAD disclosures in Table 6 (c) to Sec. 3.173 should

reflect the effects of collateral, qualifying master netting

agreements, eligible guarantees and eligible credit derivatives as

defined under this part. Disclosure of each PD grade should include

the exposure-weighted average PD for each grade. Where a national bank

or Federal savings association aggregates PD grades for the purposes

of disclosure, this should be a representative breakdown of the

distribution of PD grades used for regulatory capital purposes.\3\ Outstanding loans and EAD on undrawn commitments can be presented on

a combined basis for these disclosures.\4\ These disclosures are a way of further informing the reader about

the reliability of the information provided in the ``quantitative

disclosures: Risk assessment'' over the long run. The disclosures are

requirements from year-end 2010; in the meantime, early adoption is

encouraged. The phased implementation is to allow a national bank or

Federal savings association sufficient time to build up a longer run

of data that will make these disclosures meaningful.\5\ This disclosure item is not intended to be prescriptive about the

period used for this assessment. Upon implementation, it is expected

that a national bank or Federal savings association would provide

these disclosures for as long a set of data as possible--for example,

if a national bank or Federal savings association has 10 years of

data, it might choose to disclose the average default rates for each

PD grade over that 10-year period. Annual amounts need not be

disclosed.\6\ A national bank or Federal savings association must provide this

further decomposition where it will allow users greater insight into

the reliability of the estimates provided in the ``quantitative

disclosures: Risk assessment.'' In particular, it must provide this

information where there are material differences between its estimates

of PD, LGD or EAD compared to actual outcomes over the long run. The

national bank or Federal savings association must also provide

explanations for such differences.

Table 7 to Sec. 3.173--General Disclosure for Counterparty Credit Risk

of OTC Derivative Contracts, Repo-Style Transactions, and Eligible

(a).............. The general

qualitative

disclosure

requirement with

respect to OTC

derivatives,

eligible margin

loans, and repo-

style transactions,

including:

(1) Discussion of

methodology used to

assign economic

capital and credit

limits for

counterparty credit

exposures;

(2) Discussion of

policies for

securing collateral,

valuing and managing

collateral, and

establishing credit

reserves;

(3) Discussion of the

primary types of

collateral taken;

(4) Discussion of

policies with

respect to wrong-way

risk exposures; and

(5) Discussion of the

impact of the amount

of collateral the

national bank or

Federal savings

association would

have to provide if

the national bank or

Federal savings

association were to

receive a credit

rating downgrade.Quantitative Disclosures...... (b).............. Gross positive fair

value of contracts,

netting benefits,

netted current

credit exposure,

collateral held

(including type, for

example, cash,

government

securities), and net

unsecured credit

exposure.\1\ Also

report measures for

EAD used for

regulatory capital

for these

transactions, the

notional value of

credit derivative

hedges purchased for

counterparty credit

risk protection,

and, for national

banks or Federal

savings associations

not using the

internal models

methodology in Sec.

3.132(d) , the

distribution of

current credit

exposure by types of

credit exposure.\2\

(c).............. Notional amount of

purchased and sold

credit derivatives,

segregated between

use for the national

bank's or Federal

savings

association's own

credit portfolio and

for its

intermediation

activities,

including the

distribution of the

credit derivative

products used,

categorized further

by protection bought

and sold within each

product group.

(d).............. The estimate of alpha

if the national bank

or Federal savings

association has

received supervisory

approval to estimate

alpha.------------------------------------------------------------------------\1\ Net unsecured credit exposure is the credit exposure after

considering the benefits from legally enforceable netting agreements

and collateral arrangements, without taking into account haircuts for

price volatility, liquidity, etc.\2\ This may include interest rate derivative contracts, foreign

exchange derivative contracts, equity derivative contracts, credit

derivatives, commodity or other derivative contracts, repo-style

transactions, and eligible margin loans.

Table 8 To Sec. 3.173--Credit Risk Mitigation \1 2\------------------------------------------------------------------------

(a).............. The general

qualitative

disclosure

requirement with

respect to credit

risk mitigation,

including:

(1) Policies and

processes for, and

an indication of the

extent to which the

national bank or

Federal savings

association uses, on-

or off-balance

sheet netting;

(2) Policies and

processes for

collateral valuation

and management;

(3) A description of

the main types of

collateral taken by

the national bank or

Federal savings

association;

(4) The main types of

guarantors/credit

derivative

counterparties and

their

creditworthiness;

and

(5) Information about

(market or credit)

risk concentrations

within the

mitigation taken.Quantitative disclosures...... (b).............. For each separately

disclosed portfolio,

the total exposure

(after, where

applicable, on- or

off-balance sheet

netting) that is

covered by

guarantees/credit

derivatives.------------------------------------------------------------------------\1\ At a minimum, a national bank or Federal savings association must

provide the disclosures in Table 8 in relation to credit risk

mitigation that has been recognized for the purposes of reducing

capital requirements under this subpart. Where relevant, national

banks or Federal savings associations are encouraged to give further

information about mitigants that have not been recognized for that

purpose.\2\ Credit derivatives and other credit mitigation that are treated for

the purposes of this subpart as synthetic securitization exposures

should be excluded from the credit risk mitigation disclosures (in

Table 8 to Sec. 3.173) and included within those relating to

securitization (in Table 9 to Sec. 3.173).

(a).............. The general

qualitative

disclosure

requirement with

respect to

securitization

(including synthetic

securitizations),

including a

discussion of:

(1) The national

bank's or Federal

savings

association's

objectives for

securitizing assets,

including the extent

to which these

activities transfer

credit risk of the

underlying exposures

away from the

national bank or

Federal savings

association to other

entities and

including the type

of risks assumed and

retained with

resecuritization

activity; \1\

(2) The nature of the

risks (e.g.

liquidity risk)

inherent in the

securitized assets;

(3) The roles played

by the national bank

or Federal savings

association in the

securitization

process \2\ and an

indication of the

extent of the

national bank's or

Federal savings

association's

involvement in each

of them;

(4) The processes in

place to monitor

changes in the

credit and market

risk of

securitization

exposures including

how those processes

differ for

resecuritization

exposures;

(5) The national

bank's or Federal

savings

association's policy

for mitigating the

credit risk retained

through

securitization and

resecuritization

exposures; and

(6) The risk-based

capital approaches

that the national

bank or Federal

savings association

follows for its

securitization

exposures including

the type of

securitization

exposure to which

each approach

applies.

(b).............. A list of:

(1) The type of

securitization SPEs

that the national

bank or Federal

savings association,

as sponsor, uses to

securitize third-

party exposures. The

national bank or

Federal savings

association must

indicate whether it

has exposure to

these SPEs, either

on- or off- balance

sheet; and

(2) Affiliated

entities:

(i) That the national

bank or Federal

savings association

manages or advises;

and

(ii) That invest

either in the

securitization

exposures that the

national bank or

Federal savings

association has

securitized or in

securitization SPEs

that the national

bank or Federal

savings association

sponsors.\3\

(c).............. Summary of the

national bank's or

Federal savings

association's

accounting policies

for securitization

activities,

including:

(1) Whether the

transactions are

treated as sales or

financings;

(2) Recognition of

gain-on-sale;

(3) Methods and key

assumptions and

inputs applied in

valuing retained or

purchased interests;

(4) Changes in

methods and key

assumptions and

inputs 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 E of

this part; and

(7) Policies for

recognizing

liabilities on the

balance sheet for

arrangements that

could require the

national bank or

Federal savings

association to

provide financial

support for

securitized assets.

(d).............. An explanation of

significant changes

to any of the

quantitative

information set

forth below since

the last reporting

period.Quantitative disclosures...... (e).............. The total outstanding

exposures

securitized \4\ by

the national bank or

Federal savings

association in

securitizations that

meet the operational

criteria in Sec.

3.141 (categorized

into traditional/

synthetic), by

underlying exposure

type \5\ separately

for securitizations

of third-party

exposures for which

the bank acts only

as sponsor.

(f).............. For exposures

securitized by the

national bank or

Federal savings

association in

securitizations that

meet the operational

criteria in Sec.

3.141:

(1) Amount of

securitized assets

that are impaired

\6\/past due

categorized by

exposure type; and

(2) Losses recognized

by the national bank

or Federal savings

association during

the current period

categorized by

exposure type.\7\

(g).............. The total amount of

outstanding

exposures intended

to be securitized

categorized by

exposure type.

(h).............. Aggregate amount of:

(1) On-balance sheet

securitization

exposures retained

or purchased

categorized by

exposure type; and

(2) Off-balance sheet

securitization

exposures

categorized by

exposure type.

(i).............. (1) Aggregate amount

of securitization

exposures retained

or purchased and the

associated capital

requirements for

these exposures,

categorized between

securitization and

resecuritization

exposures, further

categorized into a

meaningful number of

risk weight bands

and by risk-based

capital approach

(e.g. SA, SFA, or

SSFA).

(2) Exposures that

have been deducted

entirely from tier 1

capital, CEIOs

deducted from total

capital (as

described in Sec.

3.42(a)(1), and

other exposures

deducted from total

capital should be

disclosed separately

by exposure type.

(j).............. Summary of current

year's

securitization

activity, including

the amount of

exposures

securitized (by

exposure type), and

recognized gain or

loss on sale by

asset type.

(k).............. Aggregate amount of

resecuritization

exposures retained

or purchased

categorized

according to:

(1) Exposures to

which credit risk

mitigation is

applied and those

not applied; and

(2) Exposures to

guarantors

categorized

according to

guarantor

creditworthiness

categories or

guarantor name.------------------------------------------------------------------------\1\ The national bank or Federal savings association must describe the

structure of resecuritizations in which it participates; this

description must be provided for the main categories of

resecuritization products in which the national bank or Federal

savings association is active.\2\ For example, these roles would include originator, investor,

servicer, provider of credit enhancement, sponsor, liquidity provider,

or swap provider.\3\ For example, money market mutual funds should be listed

individually, and personal and private trusts, should be noted

collectively.\4\ ``Exposures securitized'' include underlying exposures originated by

the bank, whether generated by them or purchased, and recognized in

the balance sheet, from third parties, and third-party exposures

included in sponsored transactions. Securitization transactions

(including underlying exposures originally on the bank's balance sheet

and underlying exposures acquired by the bank from third-party

entities) in which the originating bank does not retain any

securitization exposure should be shown separately but need only be

reported for the year of inception.\5\ A national bank or Federal savings association is required to

disclose exposures regardless of whether there is a capital charge

under this part.\6\ A national bank or Federal savings association must include credit-

related other than temporary impairment (OTTI).\7\ For example, charge-offs/allowances (if the assets remain on the

bank's balance sheet) or credit-related OTTI of I/O strips and other

retained residual interests, as well as recognition of liabilities for

probable future financial support required of the bank with respect to

securitized assets.

(a).............. The general

qualitative

disclosure

requirement for

operational risk.

(b).............. Description of the

AMA, including a

discussion of

relevant internal

and external factors

considered in the

national bank's or

Federal savings

association's

measurement

approach.

(c).............. A description of the

use of insurance for

the purpose of

mitigating

operational risk.------------------------------------------------------------------------

(a).............. The general

qualitative

disclosure

requirement with

respect to the

equity risk of

equity holdings not

subject to subpart F

of this part,

including:

(1) Differentiation

between holdings on

which capital gains

are expected and

those held for other

objectives,

including for

relationship and

strategic reasons;

and

(2) Discussion of

important policies

covering the

valuation of and

accounting for

equity holdings not

subject to subpart F

of this part. This

includes the

accounting

methodology and

valuation

methodologies used,

including key

assumptions and

practices affecting

valuation as well as

significant changes

in these practices.Quantitative disclosures...... (b).............. Carrying value on the

balance sheet of

equity investments,

as well as the fair

value of those

investments.

(c).............. The types and nature

of investments,

including the amount

that is:

(1) Publicly traded;

and

(2) Non-publicly

traded.

(d).............. The cumulative

realized gains

(losses) arising

from sales and

liquidations in the

reporting period.

(e).............. (1) Total unrealized

gains (losses) \1\

(2) Total latent

revaluation gains

(losses) \2\

(3) Any amounts of

the above included

in tier 1 and/or

tier 2 capital.

(f).............. Capital requirements

categorized by

appropriate equity

groupings,

consistent with the

national bank's or

Federal savings

association's

methodology, as well

as the aggregate

amounts and the type

of equity

investments subject

to any supervisory

transition regarding

total capital

requirements.\3\------------------------------------------------------------------------\1\ Unrealized gains (losses) recognized in the balance sheet but not

through earnings.\2\ Unrealized gains (losses) not recognized either in the balance sheet

or through earnings.\3\ This disclosure must include a breakdown of equities that are

subject to the 0 percent, 20 percent, 100 percent, 300 percent, 400

percent, and 600 percent risk weights, as applicable.

(a).............. The general

qualitative

disclosure

requirement,

including the nature

of interest rate

risk for non-trading

activities and key

assumptions,

including

assumptions

regarding loan

prepayments and

behavior of non-

maturity deposits,

and frequency of

measurement of

interest rate risk

for non-trading

activities.

Quantitative disclosures...... (b).............. The increase

(decline) in

earnings or economic

value (or relevant

measure used by

management) for

upward and downward

rate shocks

according to

management's method

for measuring

interest rate risk

for non-trading

activities,

categorized by

currency (as

appropriate).------------------------------------------------------------------------

(c) Except as provided in Sec. 3.172(b), a national bank or Federal savings association described in Sec. 3.172(d) must make the disclosures described in Table 13 to Sec. 3.173; provided, however, the disclosures required under this paragraph are required without regard to whether the national bank or Federal savings association has completed the parallel run process and has received notification from the OCC pursuant to Sec. 3.121(d). The national bank or Federal savings association must make these disclosures publicly available beginning on January 1, 2015.

Table 13 to Sec. 3.173--Supplementary Leverage Ratio----------------------------------------------------------------------------------------------------------------

Dollar amounts in thousands

---------------------------------------------------

Tril Bil Mil Thou----------------------------------------------------------------------------------------------------------------

Part 1: Summary comparison of accounting assets and total leverage exposure----------------------------------------------------------------------------------------------------------------1 Total consolidated assets as reported in published

financial statements.......................................2 Adjustment for investments in banking, financial,

insurance or commercial entities that are consolidated for

accounting purposes but outside the scope of regulatory

consolidation..............................................3 Adjustment for fiduciary assets recognized on balance

sheet but excluded from total leverage exposure............4 Adjustment for derivative exposures......................5 Adjustment for repo-style transactions...................6 Adjustment for off-balance sheet exposures (that is,

conversion to credit equivalent amounts of off-balance

sheet exposures)...........................................7 Other adjustments........................................8 Total leverage exposure..................................----------------------------------------------------------------------------------------------------------------

Part 2: Supplementary leverage ratio----------------------------------------------------------------------------------------------------------------

On-balance sheet exposures

1 On-balance sheet assets (excluding on-balance sheet

assets for repo-style transactions and derivative

exposures, but including cash collateral received in

derivative transactions)...................................2 LESS: Amounts deducted from tier 1 capital...............3 Total on-balance sheet exposures (excluding on-balance

sheet assets for repo-style transactions and derivative

exposures, but including cash collateral received in

derivative transactions) (sum of lines 1 and 2)............

Derivative exposures

4 Replacement cost for derivative exposures (that is, net

of cash variation margin)..................................5 Add-on amounts for potential future exposure (PFE) for

derivative exposures.......................................6 Gross-up for cash collateral posted if deducted from the

on-balance sheet assets, except for cash variation margin..7 LESS: Deductions of receivable assets for cash variation

margin posted in derivative transactions, if included in on-

balance sheet assets.......................................8 LESS: Exempted CCP leg of client-cleared transactions....9 Effective notional principal amount of sold credit

protection.................................................10 LESS: Effective notional principal amount offsets and

PFE adjustments for sold credit protection.................11 Total derivative exposures (sum of lines 4 to 10).......

Repo-style transactions12 On-balance sheet assets for repo-style transactions,

except include the gross value of receivables for reverse

repurchase transactions. Exclude from this item the value

of securities received in a security-for-security repo-

style transaction where the securities lender has not sold

or re-hypothecated the securities received. Include in this

item the value of securities that qualified for sales

treatment that must be reversed............................13 LESS: Reduction of the gross value of receivables in

reverse repurchase transactions by cash payables in

repurchase transactions under netting agreements...........14 Counterparty credit risk for all repo-style transactions15 Exposure for repo-style transactions where a banking

organization acts as an agent..............................16 Total exposures for repo-style transactions (sum of

lines 12 to 15)............................................

Other off-balance sheet exposures

17 Off-balance sheet exposures at gross notional amounts...18 LESS: Adjustments for conversion to credit equivalent

amounts....................................................19 Off-balance sheet exposures (sum of lines 17 and 18)....

Capital and total leverage exposure

20 Tier 1 capital..........................................21 Total leverage exposure (sum of lines 3, 11, 16 and 19).

Supplementary leverage ratio

---------------------------------------------------22 Supplementary leverage ratio............................ (in percent)---------------------------------------------------------------------------------------------------------------- [78 FR 62157, 62273, Oct. 11, 2013, as amended at 79 FR 57743, Sept. 26, 2014] Secs. 3.174-3.200 [Reserved]