Code of Federal Regulations (alpha)

CFR /  Title 12  /  Part 324  /  Sec. 324.173 Disclosures by certain advanced approaches FDIC-

(a) Except as provided in Sec. 324.172(b), an FDIC-supervised institution described in Sec. 324.172(b) must make the disclosures described in Tables 1 through 13 to Sec. 324.173. The FDIC-supervised institution 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 FDIC-supervised institution must make the disclosures required under Table 13 publicly available beginning on January 1, 2015.

Table 1 to Sec. 324.173--Scope of Application------------------------------------------------------------------------

(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 E).

(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.

Table 2 to Sec. 324.173--Capital Structure------------------------------------------------------------------------

(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.------------------------------------------------------------------------

Table 3 to Sec. 324.173--Capital Adequacy------------------------------------------------------------------------

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

the FDIC-supervised

institution'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. 324.173--Capital Conservation and Countercyclical

Capital Buffers------------------------------------------------------------------------

(a)............ The FDIC-supervised

institution 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

FDIC-supervised

institution must

calculate and publicly

disclose the capital

conservation buffer and

the countercyclical

capital buffer as

described under Sec.

324.11 of subpart B.

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

FDIC-supervised

institution must

calculate and publicly

disclose the buffer

retained income of the

FDIC-supervised

institution, as

described under Sec.

324.11 of subpart B.

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

FDIC-supervised

institution 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. 324.11 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. 324.173, the FDIC-supervised institution 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.

Table 5\1\ to Sec. 324.173--Credit Risk: General Disclosures------------------------------------------------------------------------

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

disclosure requirement

with respect to credit

risk (excluding

counterparty credit

risk disclosed in

accordance with Table 7

to Sec. 324.173),

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

FDIC-supervised

institution'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,

FDIC-supervised

institutions 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. 324.173 does not cover equity exposures, which

should be reported in Table 9 to Sec. 324.173.\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. An FDIC-supervised institution

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\ An FDIC-supervised institution 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. 324.173--Credit Risk: Disclosures for Portfolios

Subject to IRB Risk-Based Capital Formulas------------------------------------------------------------------------

(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.

324.173); and

(4) Control mechanisms

for the rating system,

including discussion of

independence,

accountability, and

rating systems review.

(b)............ (1) Description of the

internal ratings

process, provided

separately for the

following:

(i) Wholesale category;

(ii) Retail

subcategories;

(iii) Residential

mortgage exposures;

(iv) Qualifying

revolving exposures;

and

(v) Other retail

exposures.

(2) For each category

and subcategory above

the description should

include:

(i) The types of

exposure included in

the category/

subcategories; and

(ii) The definitions,

methods and data for

estimation and

validation of PD, LGD,

and EAD, including

assumptions employed in

the derivation of these

variables.\1\

(1) For wholesale

risk 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

FDIC-supervised

institution experienced

higher than average

default rates, loss

rates or EADs.

(e)............ The FDIC-supervised

institution'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 FDIC-

supervised institution

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 FDIC-supervised institution 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. 324.173

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 an FDIC-

supervised institution 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 an FDIC-supervised

institution 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 an FDIC-supervised institution would provide these disclosures

for as long a set of data as possible--for example, if an FDIC-

supervised institution 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\ An FDIC-supervised institution 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

FDIC-supervised institution must also provide explanations for such

differences.

Table 7 to Sec. 324.173--General Disclosure for Counterparty Credit

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

Margin Loans------------------------------------------------------------------------

(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 FDIC-

supervised institution

would have to provide

if the FDIC-supervised

institution 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 FDIC-supervised

institutions not using

the internal models

methodology in Sec.

324.132(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 FDIC-supervised

institution'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 FDIC-supervised

institution 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. 324.173--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

FDIC-supervised

institution 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

FDIC-supervised

institution;

(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, an FDIC-supervised institution must provide the

disclosures in Table 8 to Sec. 324.173 in relation to credit risk

mitigation that has been recognized for the purposes of reducing

capital requirements under this subpart. Where relevant, FDIC-

supervised institutions 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. 324.173) and included within those relating to

securitization (in Table 9 to Sec. 324.173).

Table 9 to Sec. 324.173--Securitization------------------------------------------------------------------------

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

disclosure requirement

with respect to

securitization

(including synthetic

securitizations),

including a discussion

of:

(1) The FDIC-supervised

institution's

objectives for

securitizing assets,

including the extent to

which these activities

transfer credit risk of

the underlying

exposures away from the

FDIC-supervised

institution 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 FDIC-supervised

institution in the

securitization process

\2\ and an indication

of the extent of the

FDIC-supervised

institution'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 FDIC-supervised

institution's policy

for mitigating the

credit risk retained

through securitization

and resecuritization

exposures; and

(6) The risk-based

capital approaches that

the FDIC-supervised

institution 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 FDIC-

supervised institution,

as sponsor, uses to

securitize third-party

exposures. The FDIC-

supervised institution

must indicate whether

it has exposure to

these SPEs, either on-

or off- balance sheet;

and

(2) Affiliated entities:

(i) That the FDIC-

supervised institution

manages or advises; and

(ii) That invest either

in the securitization

exposures that the FDIC-

supervised institution

has securitized or in

securitization SPEs

that the FDIC-

supervised institution

sponsors.\3\

(c)............ Summary of the FDIC-

supervised

institution'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 FDIC-

supervised institution

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 FDIC-

supervised institution

in securitizations that

meet the operational

criteria in Sec.

324.141 (categorized

into traditional/

synthetic), by

underlying exposure

type \5\ separately for

securitizations of

third-party exposures

for which the FDIC-

supervised institution

acts only as sponsor.

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

securitized by the FDIC-

supervised institution

in securitizations that

meet the operational

criteria in Sec.

324.141:

(1) Amount of

securitized assets that

are impaired \6\/past

due categorized by

exposure type; and

(2) Losses recognized by

the FDIC-supervised

institution 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.

324.42(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 FDIC-supervised institution 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 FDIC-supervised institution 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 FDIC-supervised institution, 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 FDIC-supervised institution's balance sheet and underlying

exposures acquired by the FDIC-supervised institution 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\ An FDIC-supervised institution is required to disclose exposures

regardless of whether there is a capital charge under this part.\6\ An FDIC-supervised institution must include credit-related other

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

FDIC-supervised institution'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 FDIC-supervised institution with respect to

securitized assets.

Table 10 to Sec. 324.173--Operational Risk------------------------------------------------------------------------

(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 FDIC-

supervised

institution's

measurement approach.

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

of insurance for the

purpose of mitigating

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

Table 11 to Sec. 324.173--Equities Not Subject to Subpart F of This

Part------------------------------------------------------------------------

(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 FDIC-

supervised

institution'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. Table 12 to Sec. 324.173--Interest Rate Risk for Non-trading Activities------------------------------------------------------------------------

(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. 324.172(b), an FDIC-supervised institution described in Sec. 324.172(d) must make the disclosures described in Table 13 to Sec. 324.173; provided, however, the disclosures required under this paragraph are required without regard to whether the FDIC-supervised institution has completed the parallel run process and has received notification from the FDIC pursuant to Sec. 324.121(d). The FDIC-supervised institution must make these disclosures publicly available beginning on January 1, 2015.

Table 13 to Sec. 324.173--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 transactions

12 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 transactions.15 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

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22 Supplementary leverage ratio............................. (in percent)---------------------------------------------------------------------------------------------------------------- [78 FR 55471, Sept. 10, 2013, as amended at 79 FR 57750, Sept. 26, 2014] Sec. Sec. 324.174-324.200 [Reserved]