Regulatory Capital (Tables)

9 Months Ended

Sep. 30, 2020

Banking and Thrift, Other Disclosures [Abstract]

The following table presents the regulatory capital structure, total RWA, related regulatory capital ratios and the minimum required regulatory capital ratios for us and State Street Bank, calculated under the advanced approaches and standardized approach provisions of the Basel III final rule as of the dates indicated:


							State Street Corporation																					State Street Bank
(Dollars in millions)							Basel III Advanced Approaches September 30, 2020			Basel III Standardized Approach September 30, 2020			Basel III Advanced Approaches December 31, 2019			Basel III Standardized Approach December 31, 2019			Basel III Advanced Approaches September 30, 2020			Basel III Standardized Approach September 30, 2020			Basel III Advanced Approaches December 31, 2019			Basel III Standardized Approach December 31, 2019
Common shareholders' equity:
Common stock and related surplus							$	10,696		$	10,696		$	10,636		$	10,636		$	12,893		$	12,893		$	12,893		$	12,893
Retained earnings							23,128			23,128			21,918			21,918			13,404			13,404			13,218			13,218
Accumulated other comprehensive income (loss)							(111)			(111)			(870)			(870)			109			109			(654)			(654)
Treasury stock, at cost							(10,626)			(10,626)			(10,209)			(10,209)			—			—			—			—
Total							23,087			23,087			21,475			21,475			26,406			26,406			25,457			25,457
Regulatory capital adjustments:
Goodwill and other intangible assets, net of associated deferred tax liabilities							(8,992)			(8,992)			(9,112)			(9,112)			(8,721)			(8,721)			(8,839)			(8,839)
Other adjustments⁽¹⁾							(270)			(270)			(150)			(150)			(107)			(107)			(1)			(1)
Common equity tier 1 capital							13,825			13,825			12,213			12,213			17,578			17,578			16,617			16,617
Preferred stock							2,471			2,471			2,962			2,962			—			—			—			—


Tier 1 capital							16,296			16,296			15,175			15,175			17,578			17,578			16,617			16,617
Qualifying subordinated long-term debt							964			964			1,095			1,095			969			969			1,099			1,099

Allowance for credit losses							30			153			5			90			39			153			3			90

Total capital							$	17,290		$	17,413		$	16,275		$	16,360		$	18,586		$	18,700		$	17,719		$	17,806
Risk-weighted assets:





Credit risk⁽²⁾							$	62,199		$	109,296		$	54,763		$	102,367		$	57,723		$	105,406		$	51,610		$	98,979
Operational risk⁽³⁾							44,050			NA			47,963			NA			43,563			NA			44,138			NA




Market risk							1,863			1,863			1,638			1,638			1,863			1,863			1,638			1,638
Total risk-weighted assets							$	108,112		$	111,159		$	104,364		$	104,005		$	103,149		$	107,269		$	97,386		$	100,617
Adjusted quarterly average assets							$	247,762		$	247,762		$	219,624		$	219,624		$	244,434		$	244,434		$	216,397		$	216,397

Capital Ratios:	2020 Minimum Requirements Including Capital Conservation Buffer and G-SIB Surcharge		2019 Minimum Requirements Including Capital Conservation Buffer and G-SIB Surcharge
Common equity tier 1 capital	8.0	%	8.5	%	12.8	%	12.4		%	11.7		%	11.7		%	17.0		%	16.4		%	17.1		%	16.5		%
Tier 1 capital	9.5		10.0		15.1		14.7			14.5			14.6			17.0			16.4			17.1			16.5
Total capital	11.5		12.0		16.0		15.7			15.6			15.7			18.0			17.4			18.2			17.7

⁽¹⁾ Other adjustments within CET1 primarily include the overfunded portion of the firm’s defined benefit pension plan obligation net of associated deferred tax liabilities, disallowed deferred tax assets, and other required credit risk based deductions.

⁽²⁾Includes a CVA which reflects the risk of potential fair value adjustments for credit risk reflected in our valuation of OTC derivative contracts. We used a simple CVA approach in conformity with the Basel III advanced approaches.

⁽³⁾Under the current advanced approaches rules and regulatory guidance concerning operational risk models, RWA attributable to operational risk can vary substantially from period-to-period, without direct correlation to the effects of a particular loss event on our results of operations and financial condition and impacting dates and periods that may differ from the dates and periods as of and during which the loss event is reflected in our financial statements, with the timing and categorization dependent on the processes for model updates and, if applicable, model revalidation and regulatory review and related supervisory processes. An individual loss event can have a significant effect on the output of our operational RWA under the advanced approaches depending on the severity of the loss event and its categorization among the seven Basel-defined UOMs.

^NANot applicable