v2.4.1.9
Regulatory Capital
|
12 Months Ended |
|
Banking and Thrift [Abstract] |
|
Regulatory capital |
Regulatory capital The Federal Reserve establishes capital requirements, including well-capitalized standards, for the consolidated financial holding company. The OCC establishes similar capital requirements and standards for the Firm’s national banks, including JPMorgan Chase Bank, N.A. and Chase Bank USA, N.A. Basel III rules under the transitional Standardized and Advanced Approaches (“Basel III Standardized Transitional” and “Basel III Advanced Transitional,” respectively) became effective on January 1, 2014; December 31, 2013 data is based on Basel I rules. Basel III establishes two comprehensive methodologies for calculating RWA (a Standardized approach and an Advanced approach) which include capital requirements for credit risk, market risk, and in the case of Basel III Advanced, also operational risk. Key differences in the calculation of credit risk RWA between the Standardized and Advanced approaches are that for Basel III Advanced, credit risk RWA is based on risk-sensitive approaches which largely rely on the use of internal credit models and parameters, whereas for Basel III Standardized, credit risk RWA is generally based on supervisory risk-weightings which vary primarily by counterparty type and asset class. Market risk RWA is calculated mostly consistent across Basel III Standardized and Basel III Advanced, both of which incorporate the requirements set forth in Basel 2.5. For 2014, Basel III Standardized Transitional requires the Firm to calculate its capital ratios using the Basel III definition of capital divided by the Basel I definition of RWA, inclusive of Basel 2.5 for market risk. Beginning in 2014, there are three categories of risk-based capital under the Basel III Transitional rules: Common Equity Tier 1 capital (“CET1 capital”), as well as Tier 1 capital and Tier 2 capital. CET1 capital predominantly includes common stockholders’ equity (including capital for AOCI related to debt and equity securities classified as AFS as well as for defined benefit pension and OPEB plans), less certain deductions for goodwill, MSRs and deferred tax assets that arise from NOL and tax credit carryforwards. Tier 1 capital is predominantly comprised of CET1 capital as well as perpetual preferred stock. Tier 2 capital includes long-term debt qualifying as Tier 2 and qualifying allowance for credit losses. Total capital is Tier 1 capital plus Tier 2 capital. On February 21, 2014, the Federal Reserve and the OCC informed the Firm and its national bank subsidiaries that they had satisfactorily completed the parallel run requirements and were approved to calculate capital under Basel III Advanced, in addition to Basel III Standardized, as of April 1, 2014. In conjunction with its exit from the parallel run, the capital adequacy of the Firm and its national bank subsidiaries is evaluated against the Basel III approach (Standardized or Advanced) which results, for each quarter beginning with the second quarter of 2014, in the lower ratio (the “Collins Floor”), as required by the Collins Amendment of the Dodd-Frank Act. The following tables present the regulatory capital, assets and risk-based capital ratios for JPMorgan Chase and its significant national bank subsidiaries under both Basel III Standardized Transitional and Basel III Advanced Transitional at December 31, 2014, and under Basel I at December 31, 2013. | | | | | | | | | | | | | | JPMorgan Chase & Co.(d) | | Basel III Standardized Transitional | | Basel III Advanced Transitional | | Basel I | (in millions, except ratios) | Dec 31, 2014 | | Dec 31, 2014 | | Dec 31, 2013 | Regulatory capital | | | | | | CET1 capital | $ | 164,764 |
| | $ | 164,764 |
| | NA | Tier 1 capital(a) | 186,632 |
| | 186,632 |
| | $ | 165,663 |
| Total capital | 221,563 |
| | 211,022 |
| | 199,286 |
| | | | | | | Assets | | | | | | Risk-weighted | 1,472,602 |
| | 1,608,240 |
| | 1,387,863 |
| Adjusted average(b) | 2,465,414 |
| | 2,465,414 |
| | 2,343,713 |
| | | | | | | Capital ratios(c) | | | | | | CET1 | 11.2 | % | | 10.2 | % | | NA | Tier 1(a) | 12.7 |
| | 11.6 |
| | 11.9 | % | Total | 15.0 |
| | 13.1 |
| | 14.4 |
| Tier 1 leverage | 7.6 |
| | 7.6 |
| | 7.1 |
|
| | | | | | | | | | | | | | JPMorgan Chase Bank, N.A.(d) | | Basel III Standardized Transitional | | Basel III Advanced Transitional | | Basel I | (in millions, except ratios) | Dec 31, 2014 | | Dec 31, 2014 | | Dec 31, 2013 | Regulatory capital | | | | | | CET1 capital | $ | 156,898 |
| | $ | 156,898 |
| | NA | Tier 1 capital(a) | 157,222 |
| | 157,222 |
| | $ | 139,727 |
| Total capital | 173,659 |
| | 166,662 |
| | 165,496 |
| | | | | | | Assets | | | | | | Risk-weighted | 1,230,358 |
| | 1,330,175 |
| | 1,171,574 |
| Adjusted average(b) | 1,968,131 |
| | 1,968,131 |
| | 1,900,770 |
| | | | | | | Capital ratios(c) | | | | | | CET1 | 12.8 | % | | 11.8 | % | | NA | Tier 1(a) | 12.8 |
| | 11.8 |
| | 11.9 | % | Total | 14.1 |
| | 12.5 |
| | 14.1 |
| Tier 1 leverage | 8.0 |
| | 8.0 |
| | 7.4 |
|
| | | | | | | | | | | | | | Chase Bank USA, N.A.(d) | | Basel III Standardized Transitional | | Basel III Advanced Transitional | | Basel I | (in millions, except ratios) | Dec 31, 2014 | | Dec 31, 2014 | | Dec 31, 2013 | Regulatory capital | | | | | | CET1 capital | $ | 14,556 |
| | $ | 14,556 |
| | NA | Tier 1 capital(a) | 14,556 |
| | 14,556 |
| | $ | 12,956 |
| Total capital | 20,517 |
| | 19,206 |
| | 16,389 |
| | | | | | | Assets | | | | | | Risk-weighted | 103,468 |
| | 157,565 |
| | 100,990 |
| Adjusted average(b) | 128,111 |
| | 128,111 |
| | 109,731 |
| | | | | | | Capital ratios(c) | | | | | | CET1 | 14.1 | % | | 9.2 | % | | NA | Tier 1(a) | 14.1 |
| | 9.2 |
| | 12.8 | % | Total | 19.8 |
| | 12.2 |
| | 16.2 |
| Tier 1 leverage | 11.4 |
| | 11.4 |
| | 11.8 |
|
| | (a) | At December 31, 2014, trust preferred securities included in Basel III Tier 1 capital were $2.7 billion and $300 million for JPMorgan Chase and JPMorgan Chase Bank, N.A., respectively. At December 31, 2014, Chase Bank USA, N.A. had no trust preferred securities. |
| | (b) | Adjusted average assets, for purposes of calculating the leverage ratio, includes total quarterly average assets adjusted for unrealized gains/(losses) on securities, less deductions for disallowed goodwill and other intangible assets, investments in certain subsidiaries, and the total adjusted carrying value of nonfinancial equity investments that are subject to deductions from Tier 1 capital. |
| | (c) | For each of the risk-based capital ratios the lower of the Standardized Transitional or Advanced Transitional ratio represents the Collins Floor. |
| | (d) | Asset and capital amounts for JPMorgan Chase’s banking subsidiaries reflect intercompany transactions; whereas the respective amounts for JPMorgan Chase reflect the elimination of intercompany transactions. |
| | Note: | Rating agencies allow measures of capital to be adjusted upward for deferred tax liabilities, which have resulted from both non-taxable business combinations and from tax-deductible goodwill. The Firm had deferred tax liabilities resulting from non-taxable business combinations totaling $130 million and $192 million at December 31, 2014, and December 31, 2013, respectively; and deferred tax liabilities resulting from tax-deductible goodwill of $2.7 billion and $2.8 billion at December 31, 2014, and December 31, 2013, respectively. |
Under the risk-based capital guidelines of the Federal Reserve, JPMorgan Chase is required to maintain minimum ratios of Tier 1 and Total capital to risk-weighted assets, as well as minimum leverage ratios (which are defined as Tier 1 capital divided by adjusted quarterly average assets). Failure to meet these minimum requirements could cause the Federal Reserve to take action. Bank subsidiaries also are subject to these capital requirements by their respective primary regulators. The following table presents the minimum ratios to which the Firm and its national bank subsidiaries are subject as of December 31, 2014. | | | | | | | | | Minimum capital ratios(a) | | Well-capitalized ratios(a) | | Capital ratios | | | | | CET1 | 4.0 | % | | NA |
| | Tier 1 | 5.5 |
| | 6.0 | % | | Total | 8.0 |
| | 10.0 |
| | Tier 1 leverage | 4.0 |
| | 5.0 |
| (b) |
| | (a) | As defined by the regulations issued by the Federal Reserve, OCC and FDIC. The CET1 capital ratio became a relevant measure of capital under the prompt corrective action requirements on January 1, 2015. |
| | (b) | Represents requirements for bank subsidiaries pursuant to regulations issued under the FDIC Improvement Act. There is no Tier 1 leverage component in the definition of a well-capitalized bank holding company. |
As of December 31, 2014, and 2013, JPMorgan Chase and all of its banking subsidiaries were well-capitalized and met all capital requirements to which each was subject. |
X |
- Details
Name: |
us-gaap_BankingAndThriftAbstract |
Namespace Prefix: |
us-gaap_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- Definition
The entire disclosure for banks, savings institutions, and credit unions, for regulatory capital requirements imposed by the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS) or for any state imposed capital requirements, as applicable. The disclosure may include (1) a description of regulatory capital requirements (a) for capital adequacy purposes and (b) established by the prompt corrective action provisions of Section 38 of the Federal Depository Insurance Act; (2) the actual or possible material effects of noncompliance with such requirements; (3) whether the entity is in compliance with the regulatory capital requirements including (a) required and actual ratios and amounts of Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, tangible capital (for savings institutions), and Tier 3 capital for market risk (for certain banks and bank holding companies), (b) factors that may significantly affect capital adequacy; (4) the prompt corrective action category in which the entity was classified as of its most recent notification; (5) whether management believes any conditions or events since notification have changed the entity's category. Also may include additional information that might be disclosed in situations where substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time.
+ References+ Details
Name: |
us-gaap_RegulatoryCapitalRequirementsUnderBankingRegulationsTextBlock |
Namespace Prefix: |
us-gaap_ |
Data Type: |
nonnum:textBlockItemType |
Balance Type: |
na |
Period Type: |
duration |
|
|