Regulatory Requirements

At September 30, 2018, Schwab and CSB met all of their respective capital requirements. The regulatory capital and ratios for CSC (consolidated) and CSB are as follows:



	Actual				Minimum to be Well Capitalized				Minimum Capital Requirement
September 30, 2018	Amount		Ratio		Amount		Ratio		Amount		Ratio
CSC
Common Equity Tier 1 Risk-Based Capital	$	17,025	19.6	%	N/A				$	3,907	4.5	%
Tier 1 Risk-Based Capital	19,818		22.8	%	N/A				5,210		6.0	%
Total Risk-Based Capital	19,846		22.9	%	N/A				6,946		8.0	%
Tier 1 Leverage	19,818		7.5	%	N/A				10,622		4.0	%
CSB
Common Equity Tier 1 Risk-Based Capital	$	15,164	20.2	%	$	4,890	6.5	%	$	3,385	4.5	%
Tier 1 Risk-Based Capital	15,164		20.2	%	6,018		8.0	%	4,513		6.0	%
Total Risk-Based Capital	15,191		20.2	%	7,522		10.0	%	6,018		8.0	%
Tier 1 Leverage	15,164		7.1	%	10,668		5.0	%	8,534		4.0	%

December 31, 2017
CSC
Common Equity Tier 1 Risk-Based Capital	$	14,630	19.3	%	N/A				$	3,414	4.5	%
Tier 1 Risk-Based Capital	17,423		23.0	%	N/A				4,552		6.0	%
Total Risk-Based Capital	17,452		23.0	%	N/A				6,069		8.0	%
Tier 1 Leverage	17,423		7.6	%	N/A				9,218		4.0	%
CSB
Common Equity Tier 1 Risk-Based Capital	$	13,355	20.1	%	$	4,324	6.5	%	$	2,993	4.5	%
Tier 1 Risk-Based Capital	13,355		20.1	%	5,321		8.0	%	3,991		6.0	%
Total Risk-Based Capital	13,382		20.1	%	6,652		10.0	%	5,321		8.0	%
Tier 1 Leverage	13,355		7.1	%	9,462		5.0	%	7,569		4.0	%

N/A Not applicable.

At September 30, 2018, CSB is considered well capitalized (the highest category) under its regulatory capital rules. At September 30, 2018, CSC’s and CSB’s capital levels exceeded the fully implemented capital conservation buffer requirement. Certain events, such as growth in bank deposits and regulatory discretion, could adversely affect our ability to meet future capital requirements.

In late 2017, Schwab acquired a federal savings bank charter and changed the name to Charles Schwab Signature Bank (CSSB). At September 30, 2018, CSSB’s balance sheet consisted primarily of investment securities with total assets of $13.1 billion. CSSB is subject to similar regulatory guidelines and requirements, and seeks to maintain a Tier 1 Leverage Ratio similar to CSB.

Net capital and net capital requirements for CS&Co are as follows:



	September 30, 2018		December 31, 2017
Net Capital	$	2,280	$	2,118
Minimum net capital required	0.250		0.250
2% of aggregate debit balances	476		435
Net Capital in excess of required net capital	$	1,804	$	1,683

In accordance with the SEC Customer Protection Rule, CS&Co had portions of its cash and investments segregated for the exclusive benefit of clients at September 30, 2018. The SEC Customer Protection Rule requires broker-dealers to segregate client fully paid securities and cash balances not collateralizing margin positions and not swept to money market funds or bank deposit accounts. Amounts included in cash and investments segregated and on deposit for regulatory purposes represent actual balances on deposit. Cash and cash equivalents included in cash and investments segregated and on deposit for regulatory purposes are presented as part of Schwab’s cash balances in the consolidated statements of cash flows.