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Derivatives and Hedging Activities (Tables)
 12 Months Ended
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Fair Values, Volume of Activity and Gain (Loss) Information Related to Derivative Instruments
The following table summarizes the fair values of our derivative instruments on a gross and net basis as of December 31, 2021, and December 31, 2020. The change in the notional amounts of these derivatives by type from December 31, 2020, to December 31, 2021, indicates the volume of our derivative transaction activity during 2021. The notional amounts are not affected by bilateral collateral and master netting agreements. The derivative asset and liability balances are presented on a gross basis, prior to the application of bilateral collateral and master netting agreements. Total derivative assets and liabilities are adjusted to take into account the impact of legally enforceable master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Where master netting agreements are not in effect or are not enforceable under bankruptcy laws, we do not adjust those derivative assets and liabilities with counterparties. Securities collateral related to legally enforceable master netting agreements is not offset on the balance sheet. Our derivative instruments are included in “accrued income and other assets” or “accrued expenses and other liabilities” on the balance sheet, as indicated in the following table:
 
 December 31, 2021December 31, 2020
  
Fair Value (a)
 
Fair Value (a)
Dollars in millions
Notional
Amount
Derivative
Assets
Derivative
Liabilities
Notional
Amount
Derivative
Assets
Derivative
Liabilities
Derivatives designated as hedging instruments:
Interest rate$38,654 $39 $4 $36,135 $70 $(3)
Derivatives not designated as hedging instruments:
Interest rate72,088 768 249 78,424 1,514 291 
Foreign exchange9,073 81 76 6,385 109 103 
Commodity14,151 1,330 1,335 9,702 426 408 
Credit465 1 12 423 1 11 
Other (b)
3,330 27 11 4,951 58 16 
Total99,107 2,207 1,683 99,885 2,108 829 
Netting adjustments (c)
— (284)(1,526)— (380)(675)
Net derivatives in the balance sheet137,761 1,962 161 136,020 1,798 151 
Other collateral (d)
— (1)— — (2)(11)
Net derivative amounts$137,761 $1,961 $161 $136,020 $1,796 $140 
 
(a)We take into account bilateral collateral and master netting agreements that allow us to settle all derivative contracts held with a single counterparty on a net basis, and to offset the net derivative position with the related cash collateral when recognizing derivative assets and liabilities. As a result, we could have derivative contracts with negative fair values included in derivative assets and contracts with positive fair values included in derivative liabilities.
(b)Other derivatives include interest rate lock commitments and forward sale commitments related to our residential mortgage banking activities, forward purchase and sales contracts consisting of contractual commitments associated with “to be announced” securities and when issued securities.
(c)Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance.
(d)Other collateral represents the amount that cannot be used to offset our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The other collateral consists of securities and is exchanged under bilateral collateral and master netting agreements that allow us to offset the net derivative position with the related collateral. The application of the other collateral cannot reduce the net derivative position below zero. Therefore, excess other collateral, if any, is not reflected above.
Pre-Tax Net Gains (Losses) on Fair Value Hedges
The following tables summarize the amounts that were recorded on the balance sheet as of December 31, 2021 and December 31, 2020, related to cumulative basis adjustments for fair value hedges.
December 31, 2021
Dollars in millionsBalance sheet line item in which the hedge item is included
Carrying amount of hedged item(a)
Hedge accounting basis adjustment
Interest rate contracts
Long-term debt(b)
$7,553 $138 
Interest rate contracts
Securities available for sale(c)
6,280 134 
December 31, 2020
Dollars in millionsBalance sheet line item in which the hedge item is included
Carrying amount of hedged item (a)
Hedge accounting basis adjustment
Interest rate contracts
Long-term debt(b)
$8,182 $416 
Interest rate contracts
Securities available for sale(c)
$2,080 $(21)
(a)The carrying amount represents the portion of the asset or liability designated as the hedged item.
(b)Basis adjustments related to de-designated hedges that no longer qualify as fair value hedges reduced the hedge accounting basis adjustment by $7 million and $8 million at December 31, 2021 and December 31, 2020, respectively.
(c)These amounts are designated as fair value hedges under the last-of-layer method. The carrying amount represents the amortized costs basis of the prepayable financial assets used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. At December 31, 2021 and December 31, 2020 the amortized cost of the closed portfolios used in these hedging relationships was $7.7 billion and $2.5 billion, respectively.
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location The following tables summarize the effect of fair value and cash flow hedge accounting on the income statement for the years ended December 31, 2021, December 31, 2020, and December 31, 2019.
Location and amount of net gains (losses) recognized in income on fair value and cash flow hedging relationships
Dollars in millionsInterest expense – long-term debtInterest income – loansInterest Income - securitiesInvestment banking and debt placement feesInterest expense – depositsOther income
Twelve Months Ended December 31, 2021
Total amounts presented in the consolidated statement of income$(221)$3,532 $546 $937 $(67)$147 
Net gains (losses) on fair value hedging relationships
Interest contracts
Recognized on hedged items276 — (113)— — — 
Recognized on derivatives designated as hedging instruments(150)— 113 — — — 
Net income (expense) recognized on fair value hedges$126 $— $— $— $— $— 
Net gain (loss) on cash flow hedging relationships
Realized gains (losses) (pre-tax) reclassified from AOCI into net income
Interest contracts$(4)$329 $— $4 $— $— 
Net income (expense) recognized on cash flow hedges$(4)$329 $— $4 $— $— 
Twelve Months Ended December 31, 2020
Total amounts presented in the consolidated statement of income$(286)$3,866 $484 $661 $(347)$15 
Net gains (losses) on fair value hedging relationships
Interest contracts
Recognized on hedged items(177)— — — — — 
Recognized on derivatives designated as hedging instruments305 — — — — — 
Net income (expense) recognized on fair value hedges$128 $— $— $— $— $— 
Net gain (loss) on cash flow hedging relationships
Realized gains (losses) (pre-tax) reclassified from AOCI into net income
Interest contracts$(4)$319 $— $— $— $— 
Net income (expense) recognized on cash flow hedges$(4)$319 $— $— $— $— 
Twelve Months Ended December 31, 2019
Total amounts presented in the consolidated statement of income$(454)$4,267 $537 $630 $(853)$68 
Net gains (losses) on fair value hedging relationships
Interest contracts
Recognized on hedged items(247)— — — (1)— 
Recognized on derivatives designated as hedging instruments231 — — — — — 
Net income (expense) recognized on fair value hedges$(16)$— $— $— $(1)$— 
Net gain (loss) on cash flow hedging relationships
Realized gains (losses) (pre-tax) reclassified from AOCI into net income
Interest contracts$(1)$15 $— $— $— $32 
Net income (expense) recognized on cash flow hedges$(1)$15 $— $— $— 32 
Derivative Instrument Cash Flow Hedge Earning Recognized by Income Statement Location The following table summarizes the pre-tax net gains (losses) on our cash flow and net investment hedges for the years ended December 31, 2021, December 31, 2020, and December 31, 2019, and where they are recorded on the income statement. The table includes net gains (losses) recognized in OCI during the period and net gains (losses) reclassified from AOCI into income during the current period.
Dollars in millionsNet Gains (Losses)
Recognized in OCI		Income Statement Location of Net Gains (Losses)
Reclassified From OCI Into Income		Net Gains
(Losses) Reclassified
From OCI Into Income		Net Gains (Losses) Recognized in Other Income
Twelve Months Ended December 31, 2021
Cash Flow Hedges
Interest rate$(307)Interest income — Loans$329 $— 
Interest rate2 Interest expense — Long-term debt(4)— 
Interest rate10 Investment banking and debt placement fees4 — 
Net Investment Hedges
Foreign exchange contracts— Other Income— — 
Total$(295)$329 $— 
Twelve Months Ended December 31, 2020
Cash Flow Hedges
Interest rate$628 Interest income — Loans$319 $— 
Interest rate(5)Interest expense — Long-term debt(4)— 
Interest rate(9)Investment banking and debt placement fees— — 
Net Investment Hedges
Foreign exchange contracts— Other Income— — 
Total$614 $315 $— 
Twelve Months Ended December 31, 2019
Cash Flow Hedges
Interest rate$442 Interest income — Loans$15 $— 
Interest rate(1)Interest expense — Long-term debt(1)— 
Interest rate3 Investment banking and debt placement fees— — 
Net Investment Hedges
Foreign exchange contracts(4)Other Income32 — 
Total$440 $46 $— 
Pre-Tax Net Gains (Losses) on Derivatives Not Designated as Hedging Instruments
The following table summarizes the pre-tax net gains (losses) on our derivatives that are not designated as hedging instruments for the years ended December 31, 2021, December 31, 2020, and December 31, 2019, and where they are recorded on the income statement.
 202120202019
Year ended December 31,
Dollars in millions
Corporate
services
income		Consumer mortgage incomeOther
income		TotalCorporate
services
income		Consumer mortgage incomeOther
income		TotalCorporate
services
income		Consumer mortgage incomeOther
income		Total
NET GAINS (LOSSES)
Interest rate$30 — $2 $32 $32 — $(10)$22 $46 — $(2)$44 
Foreign exchange47 — — 47 41 — — 41 45 — — 45 
Commodity14 — — 14 19 — — 19 6 — — 6 
Credit4 — (36)(32)(4)— (29)(33)(6)— (36)(42)
Other— $13 (7)6 — $19 19 38 — $2 — 2 
Total net gains (losses)$95 $13 $(41)$67 $88 $19 $(20)$87 $91 $2 $(38)$55 
Fair Value of Derivative Assets by Type The following table summarizes the fair value of our derivative assets by type at the dates indicated. These assets represent our gross exposure to potential loss after taking into account the effects of bilateral collateral and master netting agreements and other means used to mitigate risk.
December 31,
Dollars in millions
20212020
Interest rate$696 $1,448 
Foreign exchange31 52 
Commodity1,108 178 
Credit— (1)
Other27 58 
Derivative assets before collateral1,862 1,735 
Plus (Less): Related collateral100 63 
Total derivative assets$1,962 $1,798 
Credit Derivatives Sold and Held
The following table provides information on the types of credit derivatives sold by us and held on the balance sheet at December 31, 2021, and December 31, 2020. The notional amount represents the amount that the seller could be required to pay. The payment/performance risk shown in the table represents a weighted average of the default probabilities for all reference entities in the respective portfolios. These default probabilities are implied from observed credit indices in the credit default swap market, which are mapped to reference entities based on Key’s internal risk rating. 
 20212020
December 31,
Dollars in millions
Notional
Amount		Average
Term
(Years)		Payment /
Performance
Risk 		Notional
Amount		Average
Term
(Years)		Payment /
Performance
Risk
Other$149 13.863.15 %$227 12.7619.53 %
Total credit derivatives sold$149 — — $227 — — 
Credit Risk Contingent Feature
The following table summarizes the additional cash and securities collateral that KeyBank would have been required to deliver under the ISDA Master Agreements had the credit risk contingent features been triggered for the derivative contracts in a net liability position as of December 31, 2021, and December 31, 2020. The additional collateral amounts were calculated based on scenarios under which KeyBank’s ratings are downgraded one, two, or three ratings as of December 31, 2021, and December 31, 2020, and take into account all collateral already posted. A similar calculation was performed for KeyCorp, and no additional collateral would have been required at December 31, 2021, or December 31, 2020.
December 31,
Dollars in millions
20212020
Moody’sS&PMoody’sS&P
KeyBank’s long-term senior unsecured credit ratingsA3A-A3A-
One rating downgrade$3 $3 $1 $1 
Two rating downgrades3 3 1 1 
Three rating downgrades3 3 1 1