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Capital Adequacy
 3 Months Ended
Mar. 31, 2020
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]  
Capital Adequacy
Capital Adequacy
The Company is subject to the capital adequacy guidelines of the Federal Reserve, and Discover Bank, the Company's main banking subsidiary, is subject to various regulatory capital requirements as administered by the FDIC. Failure to meet minimum capital requirements can result in the initiation of certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the financial position and results of the Company and Discover Bank. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Discover Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance sheet items, as calculated under regulatory guidelines. Capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.
The Company and Discover Bank are subject to regulatory and capital rules issued by the Federal Reserve and FDIC, respectively, under the Basel Committee's December 2010 framework ("Basel III rules"). The Basel III rules, which became effective for the Company January 2015, were subject to phase-in periods through the end of 2018, based on the Company being classified as a "Standardized Approach" entity. As of January 1, 2019, the Basel III rules subject to transition have all been fully phased in with the exception of certain transition provisions that were frozen pursuant to regulation issued in November 2017. Pursuant to a final rule issued in July 2019, the transition provisions that were previously frozen have been replaced with new permanent rules effective in April 2020. Additionally, on March 27, 2020, federal bank regulatory agencies announced an interim final rule that allows banks that have implemented CECL the option to delay for two years the estimated impact of CECL on regulatory capital, followed by a three-year transition period. For purposes of calculating regulatory capital, the Company has elected to defer recognition of the estimated impact of CECL on regulatory capital for two years in accordance with the interim final rule adopted by federal bank regulatory agencies on March 27, 2020. Pursuant to the interim final rule, the estimated impact of CECL on regulatory capital will be phased in over a three-year period beginning in 2022.
As of March 31, 2020, the Company and Discover Bank met all Basel III minimum capital ratio requirements to which they were subject. The Company and Discover Bank also met the requirements to be considered "well-capitalized" under Regulation Y and prompt corrective action regulations, respectively, and there have been no conditions or events that management believes have changed the Company's or Discover Bank's category. To be categorized as "well-capitalized," the Company and Discover Bank must maintain minimum capital ratios as set forth in the table below.
The following table shows the actual capital amounts and ratios of the Company and Discover Bank and comparisons of each to the regulatory minimum and "well-capitalized" requirements (dollars in millions): 
 
Actual
 
Minimum Capital
Requirements
 
Capital Requirements
To Be Classified as
Well-Capitalized
 
Amount
 
Ratio(1)
 
Amount
 
Ratio
 
Amount(2)
 
Ratio(2)
March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
Total capital (to risk-weighted assets)
 
 
 
 
 
 
 
 
 
 
 
Discover Financial Services
$
12,947

 
13.7
%
 
$
7,586

 
≥8.0%
 
$
9,482

 
≥10.0%
Discover Bank
$
13,095

 
14.0
%
 
$
7,508

 
≥8.0%
 
$
9,385

 
≥10.0%
Tier 1 capital (to risk-weighted assets)
 
 
 
 
 
 
 
 
 
 
 
Discover Financial Services
$
11,309

 
11.9
%
 
$
5,689

 
≥6.0%
 
$
5,689

 
≥6.0%
Discover Bank
$
10,966

 
11.7
%
 
$
5,631

 
≥6.0%
 
$
7,508

 
≥8.0%
Tier 1 capital (to average assets)
 
 
 
 
 
 
 
 
 
 
 
Discover Financial Services
$
11,309

 
9.9
%
 
$
4,578

 
≥4.0%
 
N/A

 
N/A
Discover Bank
$
10,966

 
9.7
%
 
$
4,529

 
≥4.0%
 
$
5,661

 
≥5.0%
Common Equity Tier 1 (to risk-weighted assets)
 
 
 
 
 
 
 
 
 
 
 
Discover Financial Services
$
10,746

 
11.3
%
 
$
4,267

 
≥4.5%
 
N/A

 
N/A
Discover Bank
$
10,966

 
11.7
%
 
$
4,223

 
≥4.5%
 
$
6,100

 
≥6.5%
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Total capital (to risk-weighted assets)
 
 
 
 
 
 
 
 
 
 
 
Discover Financial Services
$
13,250

 
13.5
%
 
$
7,860

 
≥8.0%
 
$
9,825

 
≥10.0%
Discover Bank
$
13,441

 
13.8
%
 
$
7,776

 
≥8.0%
 
$
9,720

 
≥10.0%
Tier 1 capital (to risk-weighted assets)
 
 
 
 
 
 
 
 
 
 
 
Discover Financial Services
$
11,595

 
11.8
%
 
$
5,895

 
≥6.0%
 
$
5,895

 
≥6.0%
Discover Bank
$
11,203

 
11.5
%
 
$
5,832

 
≥6.0%
 
$
7,776

 
≥8.0%
Tier 1 capital (to average assets)
 
 
 
 
 
 
 
 
 
 
 
Discover Financial Services
$
11,595

 
10.3
%
 
$
4,482

 
≥4.0%
 
N/A

 
N/A
Discover Bank
$
11,203

 
10.1
%
 
$
4,435

 
≥4.0%
 
$
5,544

 
≥5.0%
Common Equity Tier 1 (to risk-weighted assets)
 
 
 
 
 
 
 
 
 
 
 
Discover Financial Services
$
11,032

 
11.2
%
 
$
4,421

 
≥4.5%
 
N/A

 
N/A
Discover Bank
$
11,203

 
11.5
%
 
$
4,374

 
≥4.5%
 
$
6,318

 
≥6.5%
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Capital ratios are calculated based on the Basel III Standardized Approach rules, subject to applicable transition provisions, including CECL transition provisions.
(2)
The Basel III rules do not establish well-capitalized thresholds for these measures for bank holding companies. Existing well-capitalized thresholds established in the Federal Reserve's Regulation Y have been included where available.