Pledged and Restricted Assets |
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Financial Instruments Owned and Pledged as Collateral [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pledged and Restricted Assets | Pledged and Restricted Assets Certain of Northern Trust’s subsidiaries, as required or permitted by law, pledge assets to secure public and trust deposits, repurchase agreements and borrowings, as well as for other purposes, including support for securities settlement, primarily related to client activities, and for derivative contracts. The following table presents Northern Trust’s pledged assets. TABLE 135: TYPE OF PLEDGED ASSETS
Collateral required for these purposes totaled $5.7 billion and $8.5 billion at December 31, 2020 and 2019, respectively. The following table presents the available for sale debt securities pledged as collateral that are included in pledged assets. TABLE 136: FAIR VALUE OF AVAILABLE FOR SALE DEBT SECURITIES INCLUDED IN PLEDGED ASSETS
The secured parties to these transactions have the right to repledge or sell the securities as it relates to $33.5 million and $487.2 million of the pledged collateral as of December 31, 2020 and 2019, respectively. Northern Trust accepts financial assets as collateral that it is and is not permitted to repledge or sell. The collateral is generally obtained under certain reverse repurchase agreements and derivative contracts. The following table presents the fair value of securities accepted as collateral. There was no repledged or sold collateral at December 31, 2020 or 2019. TABLE 137: ACCEPTED COLLATERAL
Deposits maintained to meet Federal Reserve Bank reserve requirements averaged $0.4 billion in 2020 as compared to $1.5 billion in 2019. As a result of the economic environment arising from the COVID-19 pandemic, the Federal Reserve reduced the reserve requirement to zero percent on March 26, 2020.
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