The table below presents information about risk-based capital ratios.


$ in millions	Standardized			Advanced
As of September 2022
CET1 capital	$	98,707		$	98,707
Tier 1 capital	$	109,214		$	109,214
Tier 2 capital	$	15,599		$	12,555
Total capital	$	124,813		$	121,769
RWAs	$	688,566		$	675,075

CET1 capital ratio	14.3		%	14.6		%
Tier 1 capital ratio	15.9		%	16.2		%
Total capital ratio	18.1		%	18.0		%
As of December 2021
CET1 capital	$	96,254		$	96,254
Tier 1 capital	$	106,766		$	106,766
Tier 2 capital	$	14,636		$	12,051
Total capital	$	121,402		$	118,817
RWAs	$	676,863		$	647,921

CET1 capital ratio	14.2		%	14.9		%
Tier 1 capital ratio	15.8		%	16.5		%
Total capital ratio	17.9		%	18.3		%

Leverage Ratios. The table below presents the leverage requirements.


	Requirements
Tier 1 leverage ratio	4.0	%
SLR	5.0	%

In the table above, the SLR requirement of 5% includes a minimum of 3% and a 2% buffer applicable to G-SIBs.

The table below presents information about leverage ratios.


	For the Three Months Ended or as of
	September			December
$ in millions	2022			2021
Tier 1 capital	$	109,214		$	106,766

Average total assets	$	1,581,084		$	1,466,770
Deductions from Tier 1 capital	(8,333)			(4,583)
Average adjusted total assets	1,572,751			1,462,187
Off-balance sheet and other exposures	382,549			448,334
Total leverage exposure	$	1,955,300		$	1,910,521

Tier 1 leverage ratio	6.9		%	7.3%
SLR	5.6		%	5.6%

In the table above:

•Average total assets represents the average daily assets for the quarter adjusted for the impact of Current Expected Credit Losses (CECL) transition.

•Off-balance sheet and other exposures primarily includes the monthly average of off-balance sheet exposures, consisting of derivatives, securities financing transactions, commitments and guarantees.

•Tier 1 leverage ratio is calculated as Tier 1 capital divided by average adjusted total assets.

•SLR is calculated as Tier 1 capital divided by total leverage exposure.

Risk-Based Capital. The table below presents information about risk-based capital.


	As of
	September		December
$ in millions	2022		2021
Common shareholders’ equity	$	108,587	$	99,223
Impact of CECL transition	829		1,105
Deduction for goodwill	(5,606)		(3,610)
Deduction for identifiable intangible assets	(1,717)		(401)
Other adjustments	(3,386)		(63)
CET1 capital	98,707		96,254
Preferred stock	10,703		10,703
Deduction for investments in covered funds	(193)		(189)
Other adjustments	(3)		(2)
Tier 1 capital	$	109,214	$	106,766

Standardized Tier 2 and Total capital
Tier 1 capital	$	109,214	$	106,766
Qualifying subordinated debt	11,011		11,554
Junior subordinated debt	—		94
Allowance for credit losses	4,598		3,034
Other adjustments	(10)		(46)
Standardized Tier 2 capital	15,599		14,636
Standardized Total capital	$	124,813	$	121,402

Advanced Tier 2 and Total capital
Tier 1 capital	$	109,214	$	106,766
Standardized Tier 2 capital	15,599		14,636
Allowance for credit losses	(4,598)		(3,034)
Other adjustments	1,554		449
Advanced Tier 2 capital	12,555		12,051
Advanced Total capital	$	121,769	$	118,817

In the table above:

•Beginning in January 2022, the firm started to phase in the estimated reduction to regulatory capital as a result of adopting the CECL model. Impact of CECL transition in the table above reflects the total amount of reduction of $1.11 billion as of December 2021 to be phased in through January 2025 (at 25% per year), of which $276 million was phased in on January 1, 2022. The total amount to be phased in includes the impact of adopting CECL as of January 1, 2020, as well as 25% of the increase in the allowance for credit losses from January 1, 2020 through December 31, 2021.

•Deduction for goodwill was net of deferred tax liabilities of $682 million as of September 2022 and $675 million as of December 2021.

•Deduction for identifiable intangible assets was net of deferred tax liabilities of $246 million as of September 2022 and $17 million as of December 2021.

•Deduction for investments in covered funds represents the firm’s aggregate investments in applicable covered funds. As of December 2021, this deduction excluded investments that were subject to an extended conformance period. See Note 8 for further information about the Volcker Rule.

•Other adjustments within CET1 capital and Tier 1 capital primarily include credit valuation adjustments on derivative liabilities, the overfunded portion of the firm’s defined benefit pension plan obligation net of associated deferred tax liabilities, disallowed deferred tax assets, debt valuation adjustments and other required credit risk-based deductions. Other adjustments within Advanced Tier 2 capital include eligible credit reserves.

•Qualifying subordinated debt is subordinated debt issued by Group Inc. with an original maturity of five years or greater. The outstanding amount of subordinated debt qualifying for Tier 2 capital is reduced upon reaching a remaining maturity of five years. See Note 14 for further information about the firm’s subordinated debt.

•Junior subordinated debt is debt issued to a Trust and was fully phased out of regulatory capital on January 1, 2022. As of December 2021, 10% of this debt was included in Tier 2 capital and 90% was phased out of regulatory capital. Junior subordinated debt is reduced by the amount of Trust Preferred securities purchased by the firm. See Note 14 for further information about the firm’s junior subordinated debt and Trust Preferred securities.

The table below presents changes in CET1 capital, Tier 1 capital and Tier 2 capital.


$ in millions	Standardized		Advanced
Nine Months Ended September 2022
CET1 capital
Beginning balance	$	96,254	$	96,254
Change in:
Common shareholders’ equity	9,364		9,364
Impact of CECL transition	(276)		(276)
Deduction for goodwill	(1,996)		(1,996)
Deduction for identifiable intangible assets	(1,316)		(1,316)
Other adjustments	(3,323)		(3,323)
Ending balance	$	98,707	$	98,707

Tier 1 capital
Beginning balance	$	106,766	$	106,766
Change in:
CET1 capital	2,453		2,453
Deduction for investments in covered funds	(4)		(4)
Other adjustments	(1)		(1)
Ending balance	109,214		109,214
Tier 2 capital
Beginning balance	14,636		12,051
Change in:
Qualifying subordinated debt	(543)		(543)
Junior subordinated debt	(94)		(94)
Allowance for credit losses	1,564		—
Other adjustments	36		1,141
Ending balance	15,599		12,555
Total capital	$	124,813	$	121,769

Year Ended December 2021
CET1 capital
Beginning balance	$	81,641	$	81,641
Change in:
Common shareholders’ equity	14,494		14,494
Impact of CECL transition	(21)		(21)
Deduction for goodwill	42		42
Deduction for identifiable intangible assets	200		200
Other adjustments	(102)		(102)
Ending balance	$	96,254	$	96,254

Tier 1 capital
Beginning balance	$	92,730	$	92,730
Change in:
CET1 capital	14,613		14,613
Deduction for investments in covered funds	(83)		(83)
Preferred stock	(500)		(500)
Other adjustments	6		6
Ending balance	106,766		106,766
Tier 2 capital
Beginning balance	15,424		13,279
Change in:
Qualifying subordinated debt	(642)		(642)
Junior subordinated debt	(94)		(94)
Allowance for credit losses	(61)		—
Other adjustments	9		(492)
Ending balance	14,636		12,051
Total capital	$	121,402	$	118,817

RWAs. RWAs are calculated in accordance with both the Standardized and Advanced Capital Rules.

Credit Risk

Credit RWAs are calculated based on measures of exposure, which are then risk weighted under the Standardized and Advanced Capital Rules:

•The Standardized Capital Rules apply prescribed risk-weights, which depend largely on the type of counterparty. The exposure measures for derivatives and securities financing transactions are based on specific formulas which take certain factors into consideration.

•Under the Advanced Capital Rules, the firm computes risk-weights for wholesale and retail credit exposures in accordance with the Advanced Internal Ratings-Based approach. The exposure measures for derivatives and securities financing transactions are computed utilizing internal models.

•For both Standardized and Advanced credit RWAs, the risk-weights for securitizations and equities are based on specific required formulaic approaches.

Market Risk

RWAs for market risk in accordance with the Standardized and Advanced Capital Rules are generally consistent. Market RWAs are calculated based on measures of exposure which include the following:

•Value-at-Risk (VaR) is the potential loss in value of trading assets and liabilities, as well as certain investments, loans, and other financial assets and liabilities accounted for at fair value, due to adverse market movements over a defined time horizon with a specified confidence level.

For both risk management purposes and regulatory capital calculations, the firm uses a single VaR model which captures risks, including those related to interest rates, equity prices, currency rates and commodity prices. However, VaR used for risk management purposes differs from VaR used for regulatory capital requirements (regulatory VaR) due to differences in time horizons, confidence levels and the scope of positions on which VaR is calculated. For risk management purposes, a 95% one-day VaR is used, whereas for regulatory capital requirements, a 99% 10-day VaR is used to determine Market RWAs and a 99% one-day VaR is used to determine regulatory VaR exceptions. In addition, the daily net revenues used to determine risk management VaR exceptions (i.e., comparing the daily net revenues to the VaR measure calculated as of the end of the prior business day) include intraday activity, whereas the Capital Framework requires that intraday activity be excluded from daily net revenues when calculating regulatory VaR exceptions. Intraday activity includes bid/offer net revenues, which are more likely than not to be positive by their nature. As a result, there may be differences in the number of VaR exceptions and the amount of daily net revenues calculated for regulatory VaR compared to the amounts calculated for risk management VaR.

The firm’s positional losses observed on a single day exceeded its 99% one-day regulatory VaR on one occasion during each of the nine months ended September 2022 and the year ended 2021. There was no change in the firm’s VaR multiplier used to calculate Market RWAs;

•Stressed VaR is the potential loss in value of trading assets and liabilities, as well as certain investments, loans, and other financial assets and liabilities accounted for at fair value, during a period of significant market stress;

•Incremental risk is the potential loss in value of non-securitized positions due to the default or credit migration of issuers of financial instruments over a one-year time horizon;

•Comprehensive risk is the potential loss in value, due to price risk and defaults, within the firm’s credit correlation positions; and

•Specific risk is the risk of loss on a position that could result from factors other than broad market movements, including event risk, default risk and idiosyncratic risk. The standardized measurement method is used to determine specific risk RWAs, by applying supervisory defined risk-weighting factors after applicable netting is performed.

Operational Risk

Operational RWAs are only required to be included under the Advanced Capital Rules. The firm utilizes an internal risk-based model to quantify Operational RWAs.

The table below presents information about RWAs.


$ in millions	Standardized	Advanced
As of September 2022
Credit RWAs
Derivatives	$168,177	$122,589
Commitments, guarantees and loans	242,565	179,657
Securities financing transactions	77,807	22,339
Equity investments	31,527	33,165
Other	81,992	96,202
Total Credit RWAs	602,068	453,952
Market RWAs
Regulatory VaR	22,156	22,156
Stressed VaR	36,208	36,208
Incremental risk	9,324	9,324
Comprehensive risk	3,485	3,485
Specific risk	15,325	15,325
Total Market RWAs	86,498	86,498
Total Operational RWAs	—	134,625
Total RWAs	$688,566	$675,075
As of December 2021
Credit RWAs
Derivatives	$175,628	$109,532
Commitments, guarantees and loans	233,639	182,210
Securities financing transactions	76,346	14,407
Equity investments	43,256	45,582
Other	71,485	86,768
Total Credit RWAs	600,354	438,499
Market RWAs
Regulatory VaR	13,510	13,510
Stressed VaR	38,922	38,922
Incremental risk	6,867	6,867
Comprehensive risk	2,521	2,521
Specific risk	14,689	14,689
Total Market RWAs	76,509	76,509
Total Operational RWAs	—	132,913
Total RWAs	$676,863	$647,921

In the table above:

•Securities financing transactions represents resale and repurchase agreements and securities borrowed and loaned transactions.

•Other includes receivables, certain debt securities, cash and cash equivalents, and other assets.

The table below presents changes in RWAs.


$ in millions	Standardized	Advanced
Nine Months Ended September 2022
RWAs
Beginning balance	$676,863	$647,921
Credit RWAs
Change in:
Derivatives	(7,451)	13,057
Commitments, guarantees and loans	8,926	(2,553)
Securities financing transactions	1,461	7,932
Equity investments	(11,729)	(12,417)
Other	10,507	9,434
Change in Credit RWAs	1,714	15,453
Market RWAs
Change in:
Regulatory VaR	8,646	8,646
Stressed VaR	(2,714)	(2,714)
Incremental risk	2,457	2,457
Comprehensive risk	964	964
Specific risk	636	636
Change in Market RWAs	9,989	9,989
Change in Operational RWAs	—	1,712
Ending balance	$688,566	$675,075
Year Ended December 2021
RWAs
Beginning balance	$554,162	$609,750
Credit RWAs
Change in:
Derivatives	55,336	(2,159)
Commitments, guarantees and loans	57,138	30,623
Securities financing transactions	4,919	(2,161)
Equity investments	(3,688)	(3,686)
Other	1,211	3,169
Change in Credit RWAs	114,916	25,786
Market RWAs
Change in:
Regulatory VaR	(1,403)	(1,403)
Stressed VaR	6,944	6,944
Incremental risk	(1,015)	(1,015)
Comprehensive risk	763	763
Specific risk	2,496	2,496
Change in Market RWAs	7,785	7,785
Change in Operational RWAs	—	4,600
Ending balance	$676,863	$647,921

RWAs Rollforward Commentary

Nine Months Ended September 2022. Standardized Credit RWAs as of September 2022 increased by $1.71 billion compared with December 2021, primarily reflecting an increase in other credit RWAs (principally due to increased customer and other receivables and other assets) and an increase in commitments, guarantees and loans (principally due to increased lending activity). These increases were partially offset by a decrease in equity investments (principally due to reduced exposures as a result of unrealized losses and sales) and a decrease in derivatives (principally due to reduced exposures). Standardized Market RWAs as of September 2022 increased by $9.99 billion compared with December 2021, primarily reflecting an increase in regulatory VaR (principally due to higher levels of market volatility).

Advanced Credit RWAs as of September 2022 increased by $15.45 billion compared with December 2021, primarily reflecting an increase in derivatives (principally due to increased counterparty credit risk), an increase in other credit RWAs (principally due to increased customer and other receivables and other assets) and an increase in securities financing transactions (principally due to increased funding exposures). These increases were partially offset by a decrease in equity investments (principally due to reduced exposures as a result of unrealized losses and sales). Advanced Market RWAs as of September 2022 increased by $9.99 billion compared with December 2021, primarily reflecting an increase in regulatory VaR (principally due to higher levels of market volatility). Advanced Operational RWAs as of September 2022 increased by $1.71 billion compared with December 2021, primarily associated with litigation and regulatory proceedings.

Year Ended December 2021. Standardized Credit RWAs as of December 2021 increased by $114.92 billion compared with December 2020, primarily reflecting an increase in commitments, guarantees and loans (principally due to increased lending activity and revisions to certain interpretations of the Capital Rules underlying the RWA calculation based on regulatory feedback) and an increase in derivatives (principally due to increased exposures and the impact of SA-CCR adoption). Standardized Market RWAs as of December 2021 increased by $7.79 billion compared with December 2020, primarily reflecting an increase in stressed VaR (principally due to increased exposures to interest rates).

Advanced Credit RWAs as of December 2021 increased by $25.79 billion compared with December 2020, primarily reflecting an increase in commitments, guarantees and loans (principally due to increased lending activity). This increase was partially offset by a decrease in equity investments (principally due to the sale of equity positions). Advanced Market RWAs as of December 2021 increased by $7.79 billion compared with December 2020, primarily reflecting an increase in stressed VaR (principally due to increased exposures to interest rates). Advanced Operational RWAs as of December 2021 increased by $4.60 billion compared with December 2020, primarily associated with litigation and regulatory proceedings.

Bank Subsidiaries

GS Bank USA. GS Bank USA is the firm’s primary U.S. bank subsidiary. GS Bank USA is an FDIC-insured, New York State-chartered bank and a member of the Federal Reserve System, is supervised and regulated by the FRB, the FDIC, the New York State Department of Financial Services (NYDFS) and the Consumer Financial Protection Bureau, and is subject to regulatory capital requirements that are calculated under the Capital Framework. GS Bank USA is an Advanced approaches banking organization under the Capital Framework.

The Capital Framework includes the minimum risk-based capital and the capital conservation buffer requirements (consisting of a 2.5% buffer and the countercyclical capital buffer). The buffer must consist entirely of capital that qualifies as CET1 capital. In addition, the Capital Framework includes the leverage ratio requirement.

GS Bank USA is required to calculate the CET1 capital, Tier 1 capital and Total capital ratios in accordance with both the Standardized and Advanced Capital Rules. The lower of each risk-based capital ratio under the Standardized and Advanced Capital Rules is the ratio against which GS Bank USA’s compliance with its risk-based capital requirements is assessed. In addition, under the regulatory framework for prompt corrective action applicable to GS Bank USA, in order to meet the quantitative requirements for a “well-capitalized” depository institution, GS Bank USA must also meet the “well-capitalized” requirements in the table below. GS Bank USA’s capital levels and prompt corrective action classification are also subject to qualitative judgments by the regulators about components of capital, risk weightings and other factors. Failure to comply with the capital requirements, including a breach of the buffers described below, would result in restrictions being imposed by the regulators.

The table below presents GS Bank USA’s risk-based capital, leverage and “well-capitalized” requirements.


	Requirements		“Well-capitalized” Requirements
Risk-based capital requirements
CET1 capital ratio	7.0	%	6.5	%
Tier 1 capital ratio	8.5	%	8.0	%
Total capital ratio	10.5	%	10.0	%

Leverage requirements
Tier 1 leverage ratio	4.0	%	5.0	%
SLR	3.0	%	6.0	%

In the table above:

•The CET1 capital ratio requirement includes a minimum of 4.5%, the Tier 1 capital ratio requirement includes a minimum of 6.0% and the Total capital ratio requirement includes a minimum of 8.0%. These requirements also include the capital conservation buffer requirements consisting of a 2.5% buffer and the countercyclical capital buffer, which the FRB has set to zero percent.

•The “well-capitalized” requirements are the binding requirements for leverage ratios.

The table below presents information about GS Bank USA’s risk-based capital ratios.


$ in millions	Standardized			Advanced
As of September 2022
CET1 capital	$	45,578		$	45,578
Tier 1 capital	$	45,578		$	45,578
Tier 2 capital	$	7,728		$	5,312
Total capital	$	53,306		$	50,890
RWAs	$	343,781		$	261,371
CET1 capital ratio	13.3		%	17.4		%
Tier 1 capital ratio	13.3		%	17.4		%
Total capital ratio	15.5		%	19.5		%
As of December 2021
CET1 capital	$	42,535		$	42,535
Tier 1 capital	$	42,535		$	42,535
Tier 2 capital	$	6,430		$	4,646
Total capital	$	48,965		$	47,181
RWAs	$	312,601		$	222,607
CET1 capital ratio	13.6		%	19.1		%
Tier 1 capital ratio	13.6		%	19.1		%
Total capital ratio	15.7		%	21.2		%

In the table above:

•The lower of the Standardized or Advanced ratio is the ratio against which GS Bank USA’s compliance with the capital requirements is assessed under the risk-based Capital Rules, and therefore, the Standardized ratios applied to GS Bank USA as of both September 2022 and December 2021.

•Beginning in January 2022, GS Bank USA started to phase in the estimated reduction to regulatory capital as a result of adopting the CECL model. The total amount to be phased in includes the impact of adopting CECL as of January 1, 2020, as well as 25% of the increase in the allowance for credit losses from January 1, 2020 through December 31, 2021.

•The Standardized and Advanced risk-based capital ratios decreased from December 2021 to September 2022, reflecting an increase in both Credit and Market RWAs, partially offset by an increase in capital, principally due to capital contributions and net earnings.

The table below presents information about GS Bank USA’s leverage ratios.


	For the Three Months Ended or as of
	September			December
$ in millions	2022			2021
Tier 1 capital	$	45,578		$	42,535
Average adjusted total assets	$	506,003		$	409,739
Total leverage exposure	$	670,832		$	627,799

Tier 1 leverage ratio	9.0		%	10.4%
SLR	6.8		%	6.8		%

In the table above:

•Average adjusted total assets represents the average daily assets for the quarter adjusted for deductions from Tier 1 capital and the impact of CECL transition.

•Tier 1 leverage ratio is calculated as Tier 1 capital divided by average adjusted total assets.

•SLR is calculated as Tier 1 capital divided by total leverage exposure.

The deposits of GS Bank USA are insured by the FDIC to the extent provided by law. The FRB requires that GS Bank USA maintain cash reserves with the Federal Reserve. As of both September 2022 and December 2021, the reserve requirement ratio was zero percent. The amount deposited by GS Bank USA at the Federal Reserve was $161.28 billion as of September 2022 and $122.01 billion as of December 2021.

GS Bank USA is a registered swap dealer with the CFTC and a registered security-based swap dealer with the SEC. As of both September 2022 and December 2021, GS Bank USA was subject to and in compliance with applicable capital requirements for swap dealers and security-based swap dealers.

GSIB. GSIB is the firm’s U.K. bank subsidiary regulated by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA). GSIB is subject to the U.K. capital framework, which is largely based on Basel III.

The table below presents GSIB’s risk-based capital requirements.


	As of
	September		December
	2022		2021
Risk-based capital requirements
CET1 capital ratio	9.3	%	8.5	%
Tier 1 capital ratio	11.5	%	10.5	%
Total capital ratio	14.5	%	13.2	%

The table below presents information about GSIB’s risk-based capital ratios.


	As of
	September			December
$ in millions	2022			2021
Risk-based capital and risk-weighted assets
CET1 capital	$	3,329		$	3,408
Tier 1 capital	$	3,329		$	3,408
Tier 2 capital	$	826		$	826
Total capital	$	4,155		$	4,234
RWAs	$	15,542		$	17,196

Risk-based capital ratios
CET1 capital ratio	21.4		%	19.8		%
Tier 1 capital ratio	21.4		%	19.8		%
Total capital ratio	26.7		%	24.6		%

In the table above, the risk-based capital ratios as of September 2022 reflected profits after foreseeable charges that are still subject to verification by GSIB’s external auditors and approval by GSIB’s Board of Directors for inclusion in risk-based capital. These profits contributed approximately 160 basis points to the CET1 capital ratio as of September 2022.

The eligible retail deposits of GSIB are covered by the U.K. Financial Services Compensation Scheme to the extent provided by law. GSIB is subject to minimum reserve requirements at the Bank of England. The minimum reserve requirement was $146 million as of September 2022 and $172 million as of December 2021. The amount deposited by GSIB at the Bank of England was $710 million as of September 2022 and $2.20 billion as of December 2021.

GSBE. GSBE is the firm’s German bank subsidiary supervised by the European Central Bank, BaFin and Deutsche Bundesbank. GSBE is a non-U.S. banking subsidiary of GS Bank USA and is also subject to standalone regulatory capital requirements noted below. GSBE is subject to the capital requirements prescribed in the amended E.U. Capital Requirements Directive (CRD) and E.U. Capital Requirements Regulation (CRR), which are largely based on Basel III.

The table below presents GSBE’s risk-based capital requirements.


	As of
	September		December
	2022		2021
Risk-based capital requirements
CET1 capital ratio	9.0	%	8.7	%
Tier 1 capital ratio	11.1	%	10.8	%
Total capital ratio	13.8	%	13.5	%

The table below presents information about GSBE’s risk-based capital ratios.


	As of
	September			December
$ in millions	2022			2021
Risk-based capital and risk-weighted assets
CET1 capital	$	8,587		$	6,527
Tier 1 capital	$	8,587		$	6,527
Tier 2 capital	$	20		$	23
Total capital	$	8,607		$	6,550
RWAs	$	31,440		$	28,924

Risk-based capital ratios
CET1 capital ratio	27.3		%	22.6%
Tier 1 capital ratio	27.3		%	22.6%
Total capital ratio	27.4		%	22.6%

In the table above, the risk-based capital ratios as of September 2022 reflected profits after foreseeable charges that are still subject to verification by GSBE’s external auditors and approval by GSBE’s shareholder (GS Bank USA) for inclusion in risk-based capital. These profits contributed approximately 116 basis points to the CET1 capital ratio as of September 2022.

The table below presents GSBE’s leverage ratio requirement and leverage ratios.


	As of
	September		December
	2022		2021
Leverage ratio requirement	3.0	%	3.0	%
Leverage ratio	7.8	%	7.6	%

In the table above, the leverage ratio as of September 2022 reflected profits after foreseeable charges that are still subject to verification by GSBE’s external auditors and approval by GSBE’s shareholder (GS Bank USA) for inclusion in risk-based capital. These profits contributed approximately 33 basis points to the leverage ratio as of September 2022.

The deposits of GSBE are covered by the German statutory deposit protection program to the extent provided by law. In addition, GSBE has elected to participate in the German voluntary deposit protection program which provides insurance for certain eligible deposits not covered by the German statutory deposit program. GSBE is subject to minimum reserve requirements at central banks in certain of the jurisdictions in which it operates. The minimum reserve requirement was $150 million as of September 2022 and $189 million as of December 2021. The amount deposited by GSBE at central banks was $21.56 billion as of September 2022 and $20.36 billion as of December 2021, substantially all of which was deposited with Deutsche Bundesbank.

GSBE is a registered swap dealer with the CFTC and a registered security-based swap dealer with the SEC. As of both September 2022 and December 2021, GSBE was subject to and in compliance with applicable capital requirements for swap dealers and security-based swap dealers.

Restrictions on Payments

Group Inc. may be limited in its ability to access capital held at certain subsidiaries as a result of regulatory, tax or other constraints. These limitations include provisions of applicable law and regulations and other regulatory restrictions that limit the ability of those subsidiaries to declare and pay dividends without prior regulatory approval. For example, the amount of dividends that may be paid by GS Bank USA are limited to the lesser of the amounts calculated under a recent earnings test and an undivided profits test. As a result of dividends paid in connection with the acquisition of GSBE in July 2021, GS Bank USA cannot currently declare any additional dividends without prior regulatory approval.

In addition, subsidiaries not subject to separate regulatory capital requirements may hold capital to satisfy local tax and legal guidelines, rating agency requirements (for entities with assigned credit ratings) or internal policies, including policies concerning the minimum amount of capital a subsidiary should hold based on its underlying level of risk.

Group Inc.’s equity investment in subsidiaries was $131.99 billion as of September 2022 and $118.90 billion as of December 2021, of which Group Inc. was required to maintain $84.63 billion as of September 2022 and $77.22 billion as of December 2021, of minimum equity capital in its regulated subsidiaries in order to satisfy the regulatory requirements of such subsidiaries.

Group Inc.’s capital invested in certain non-U.S. dollar functional currency subsidiaries is exposed to foreign exchange risk, substantially all of which is managed through a combination of derivatives and non-U.S. dollar-denominated debt. See Note 7 for information about the firm’s net investment hedges used to hedge this risk.