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Regulatory Capital
 12 Months Ended
Dec. 31, 2020
Banking and Thrift, Other Disclosures [Abstract]  
Regulatory Capital Regulatory Capital
We are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum regulatory capital requirements can initiate certain mandatory and discretionary actions by regulators that, if undertaken, could have a direct material effect on our consolidated financial condition. Under current regulatory capital adequacy guidelines, we must meet specified capital requirements that involve quantitative measures of our consolidated assets, liabilities and off-balance sheet exposures calculated in conformity with regulatory accounting practices. Our capital components and their classifications are subject to qualitative judgments by regulators about components, risk weightings and other factors.
As required by the Dodd-Frank Act, we and State Street Bank, as advanced approaches banking organizations, are subject to a "capital floor" in the calculation and assessment of regulatory capital adequacy by U.S. banking regulators. Beginning on January 1, 2015, we were required to calculate our risk- based capital ratios using both the advanced approaches and the standardized approach. As a result, from January 1, 2015 going forward, our risk-based capital ratios for regulatory assessment purposes are the lower of each ratio calculated under the standardized approach and the advanced approaches.
The methods for the calculation of our and State Street Bank's risk-based capital ratios have changed as the provisions of the Basel III rule related to the numerator (capital) and denominator (RWA) were phased in, and as we calculated our RWA using the advanced approaches. These ongoing methodological changes have resulted in differences in our reported capital ratios from one reporting period to the next that are independent of applicable changes to our capital base, our asset composition, our off-balance sheet exposures or our risk profile.
As of December 31, 2020, we and State Street Bank exceeded all regulatory capital adequacy requirements to which we were subject. As of December 31, 2020, State Street Bank was categorized as “well capitalized” under the applicable regulatory capital adequacy framework, and exceeded all “well capitalized” ratio guidelines to which it was subject. Management believes that no conditions or events have occurred since December 31, 2020 that have changed the capital categorization of State Street Bank.
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 as of the dates indicated. As a result of changes in the methodologies used to calculate our regulatory capital ratios from period to period as the provisions of the Basel III rule were phased in, the ratios presented in the table for each period-end are not directly comparable. Refer to the footnotes following the table.
State Street Corporation
State Street Bank
(Dollars in millions)Basel III Advanced Approaches December 31, 2020 Basel III Standardized Approach December 31, 2020Basel III Advanced Approaches December 31, 2019Basel III Standardized Approach December 31, 2019Basel III Advanced Approaches December 31, 2020 Basel III Standardized Approach December 31, 2020Basel III Advanced Approaches December 31, 2019Basel III Standardized Approach December 31, 2019
 Common shareholders' equity:
Common stock and related surplus$10,709 $10,709 $10,636 $10,636 $12,893 $12,893 $12,893 $12,893 
Retained earnings23,442 23,442 21,918 21,918 12,939 12,939 13,218 13,218 
Accumulated other comprehensive income (loss)187 187 (870)(870)371 371 (654)(654)
Treasury stock, at cost(10,609)(10,609)(10,209)(10,209)— — — — 
Total23,729 23,729 21,475 21,475 26,203 26,203 25,457 25,457 
Regulatory capital adjustments:
Goodwill and other intangible assets, net of associated deferred tax liabilities(9,019)(9,019)(9,112)(9,112)(8,745)(8,745)(8,839)(8,839)
Other adjustments(1)
(333)(333)(150)(150)(152)(152)(1)(1)
 Common equity tier 1 capital14,377 14,377 12,213 12,213 17,306 17,306 16,617 16,617 
Preferred stock2,471 2,471 2,962 2,962 — — — — 
 Tier 1 capital16,848 16,848 15,175 15,175 17,306 17,306 16,617 16,617 
Qualifying subordinated long-term debt961 961 1,095 1,095 966 966 1,099 1,099 
Allowance for credit losses1 148 5 90 10 148 3 90 
 Total capital$17,810 $17,957 $16,275 $16,360 $18,282 $18,420 $17,719 $17,806 
 Risk-weighted assets:
Credit risk(2)
$63,367 $114,892 $54,763 $102,367 $58,960 $110,797 $51,610 $98,979 
Operational risk(3)
44,150  NA47,963 NA43,663 NA44,138 NA
Market risk2,188 2,188 1,638 1,638 2,188 2,188 1,638 1,638 
Total risk-weighted assets$109,705 $117,080 $104,364 $104,005 $104,811 $112,985 $97,386 $100,617 
Adjusted quarterly average assets$263,490 $263,490 $219,624 $219,624 $260,489 $260,489 $216,397 $216,397 
Capital Ratios:
2020 Minimum Requirements(4)
2019 Minimum Requirements(5)
Common equity tier 1 capital8.0 %8.5 %13.1 %12.3 %11.7 %11.7 %16.5 %15.3 %17.1 %16.5 %
Tier 1 capital9.5 10.0 15.4 14.4 14.5 14.6 16.5 15.3 17.1 16.5 
Total capital11.5 12.0 16.2 15.3 15.6 15.7 17.4 16.3 18.2 17.7 
Tier 1 leverage(6)
4.0 4.0 6.4 6.4 6.9 6.9 6.6 6.6 7.7 7.7 
(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.
(4) Assuming a countercyclical buffer of 0%, the minimum requirements include a capital conservation buffer and a stress capital buffer for advanced and standardized, respectively, and a G-SIB surcharge.
(5) Assuming a countercyclical buffer of 0%, the minimum requirements include a capital conservation buffer and a G-SIB surcharge.
(6) State Street Bank is required to maintain a minimum Tier 1 leverage ratio of 5% as it is the insured depository institution subsidiary of one of the eight US G-SIBs.
NA Not applicable