Standard Chartered : Full Year - Disclosure for Global Systemically Important Institutions (G-SIIs) (29 April 2022, PDF)

Standard Chartered PLC Disclosure for Global Systemically Important

Institutions (G-SIIs)

31 December 2021

Incorporated in England with registered number 966425

Principal Office: 1 Basinghall Avenue, London, EC2V 5DD, England

Standard Chartered PLC

Global Systemically Important Institutions (G-SIIs) Disclosures

Background

In July 2013 the Basel Committee for Banking Supervision ('BCBS') published a framework, "Global systemically important banks: Assessment methodology and the additional loss absorbency requirements" which outlines the methodology for assessing global systemically important banks ('G-SIBs'). The framework was published in response to a request from the Financial Stability Board ('FSB') as part of a series of measures aimed at raising the quality and quantity of capital in the banking system. The G-SIB framework established by the FSB and the BCBS is implemented in the UK via CRD and G-SIBs are referred to as Global Systemically Important Institutions ('G-SIIs').

The BCBS conducts an annual data gathering exercise as input into the methodology for assessing the systemic importance of banks in a global context. It includes the reporting of 13 indicators, grouped in five categories of systemic importance concerning size, interconnectedness, substitutability/infrastructure, complexity and cross-jurisdictional activity. The aim of the exercise is to increase capital requirements for institutions deemed systemically important and the requirement will vary depending on each bank's relative size.

The European Banking Authority ('EBA') published final draft regulatory and implementing technical standards ('RTS', 'ITS') and guidelines on the methodology and disclosures for G-SIIs on 13 January 2016. Following the UK's exit from the European Union on 31 December 2020, these binding technical standards were on-shored as retained EU law without any significant amendments. Furthermore, the BCBS published updated instructions for its annual data gathering exercise on 15 January 2020. Both publications require G-SIIs to publicly disclose the thirteen indicators for the identification of a G-SII.

Capital buffer requirements

G-SIIs are required to hold an additional buffer of Common Equity Tier 1 ('CET1') capital between 1% and 3.5%, depending on the score from the assessment methodology. The buffer is designed to reduce the probability of failure of a G-SII by requiring them to maintain additional capital to absorb potential future losses.

Standard Chartered PLC ('the Group') has been designated a G-SIB by the FSB since November 2012 and has been categorised with a 1.0 per cent G-SII CET1 buffer which was fully implemented as of 1 January 2019.

Basis of preparation

The G-SII indicators for the Group at 31 December 2021 are presented below. The data has been prepared in accordance with the Group's interpretation of the instructions provided by the BCBS and, as such, may not be comparable with other disclosures.

General Bank Data

Section 1 - General Information

• a. General information provided by the relevant supervisory authority:

  • (1) Country code

    GB

  • (2) Bank name

  • (3) Reporting date (yyyy-mm-dd)

    Standard Chartered 2021-12-31

  • (4) Reporting currency

  • (5) Euro conversion rate

  • (6) Submission date (yyyy-mm-dd)

• b. General Information provided by the reporting institution:

  • (1) Reporting unit

    USD 0.882924245 22-04-29 1,000,000

  • (2) Accounting standard

  • (3) Date of public disclosure (yyyy-mm-dd)

    IFRS 2022-04-29

  • (4) Language of public disclosure

English

• (5) Web address of public disclosure

  www.sc.com/en/investors/financial-results

• (6) LEI code

RILFO74KP1CM8P6PCT

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Standard Chartered PLC
Global Systemically Important Institutions (G-SIIs) Disclosures
Size Indicator
Section 2 - Total Exposures
a. Derivatives
(1) Counterparty exposure of derivatives contracts	7,636
(2) Capped notional amount of credit derivatives	1,534
(3) Potential future exposure of derivative contracts	50,857
b. Securities financing transactions (SFTs)
(1) Adjusted gross value of SFTs	88,418
(2) Counterparty exposure of SFTs	13,724
c. Other assets	679,318
d. Gross notional amount of off-balance sheet items
(1) Items subject to a 0% credit conversion factor (CCF)	284,158
(2) Items subject to a 20% CCF	11,861
(3) Items subject to a 50% CCF	95,415
(4) Items subject to a 100% CCF	61,010
e. Regulatory adjustments	5,260
f. Total exposures prior to regulatory adjustments (sum of items 2.a.(1) through 2.c, 0.1 times 2.d.(1), 0.2 times 2.d.(2),
0.5 times 2.d.(3), and 2.d.(4))	980,991
g. Exposures of insurance subsidiaries not included in 2.f net of intragroup:
(1) On-balance sheet and off-balance sheet insurance assets	191
(2) Potential future exposure of derivatives contracts for insurance subsidiaries	0
(3) Investment value in consolidated entities	0
h. Intragroup exposures with insurance subsidiaries reported in 2.g that are included in 2.f	0
i. Total exposures indicator, including insurance subsidiaries (sum of items 2.f, 2.g.(1) through 2.g.(2) minus 2.g.(3)
through 2.h)	981,181
Interconnectedness Indicators
Section 3 - Intra-Financial System Assets
a. Funds deposited with or lent to other financial institutions	54,810
(1) Certificates of deposit	7,621
b. Unused portion of committed lines extended to other financial institutions	14,845
c. Holdings of securities issued by other financial institutions:
(1) Secured debt securities	7,439
(2) Senior unsecured debt securities	26,068
(3) Subordinated debt securities	2,270
(4) Commercial paper	0
(5) Equity securities	2,597
(6) Offsetting short positions in relation to the specific equity securities included in item 3.c.(5)	29
d. Net positive current exposure of securities financing transactions with other financial institutions	7,572
e. Over-the-counter derivatives with other financial institutions that have a net positive fair value:
(1) Net positive fair value	13,263
(2) Potential future exposure	26,394
f. Intra-financial system assets indicator, including insurance subsidiaries (sum of items 3.a, 3.b through 3.c.(5), 3.d, 3.e.(1),
and 3.e.(2), minus 3.c.(6))	155,229
Section 4 - Intra-Financial System Liabilities
a. Funds deposited by or borrowed from other financial institutions:
(1) Deposits due to depository institutions	47,112
(2) Deposits due to non-depository financial institutions	132,782
(3) Loans obtained from other financial institutions	0
b. Unused portion of committed lines obtained from other financial institutions	0
c. Net negative current exposure of SFTs with other financial institutions	2,366
d. Over-the-counter derivatives with other financial institutions that have a net negative fair value:
(1) Net negative fair value	12,018
(2) Potential future exposure	18,718
e. Intra-financial system liabilities indicator, including insurance subsidiaries (sum of items 4.a.(1) through 4.d.(2))	212,996
Section 5 - Securities Outstanding
a. Secured debt securities	0
b. Senior unsecured debt securities	34,991
c. Subordinated debt securities	16,885
d. Commercial paper	6,328
e. Certificates of deposit	23,898
f. Common equity	19,853
g. Preferred shares and any other forms of subordinated funding not captured in item 5.c.	9,342
h. Securities outstanding indicator, including the securities issued by insurance subsidiaries (sum of items 5.a through 5.g)	111,296
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Standard Chartered PLC

Global Systemically Important Institutions (G-SIIs) Disclosures

Substitutability/Financial Institution Infrastructure Indicators

Section 6 - Payments made in the reporting year (excluding intragroup payments)

a. Australian dollars (AUD) 181,348

b. Canadian dollars (CAD) 194,586

c. Swiss francs (CHF) 117,681

d. Chinese yuan (CNY) 7,752,849

e. Euros (EUR) 2,944,398

f. British pounds (GBP)

957,076

g. Hong Kong dollars (HKD) 4,573,137

h. Indian rupee (INR) 502,590

i. Japanese yen (JPY) 467,379

j. New Zealand dollars (NZD) 32,880

k. Swedish krona (SEK) 17,862

l. United States dollars (USD) 19,283,384

n. Payments activity indicator (sum of items 6.a through 6.l) 37,025,169

Section 7 - Assets Under Custody

a. Assets under custody indicator 1,723,953

Section 8 - Underwritten Transactions in Debt and Equity Markets

a. Equity underwriting activity

0

b. Debt underwriting activity 60,615

c. Underwriting activity indicator (sum of items 8.a and 8.b) 60,615

Section 9 - Trading Volume

a. Trading volume of securities issued by other public sector entities, excluding intragroup transactions 7,604

b. Trading volume of other fixed income securities, excluding intragroup transactions 908,442

c. Trading volume fixed income sub-indicator (sum of items 9.a and 9.b) 916,046

d. Trading volume of listed equities, excluding intragroup transactions 2,373

e. Trading volume of all other securities, excluding intragroup transactions 391

f. Trading volume equities and other securities sub-indicator (sum of items 9.d and 9.e) 2,765

Complexity indicators

Section 10 - Notional Amount of Over-the-Counter (OTC) Derivatives

a. OTC derivatives cleared through a central counterparty 3,243,765

b. OTC derivatives settled bilaterally 5,962,827 c. Notional amount of over-the-counter (OTC) derivatives indicator, including insurance subsidiaries (sum of items 10.a and

10.b) 9,206,592

Section 11 - Trading and Available-for-Sale Securities

a. Held-for-trading securities (HFT) 35,287

b. Available-for-sale securities (AFS) 163,438

c. Trading and AFS securities that meet the definition of Level 1 assets 101,227

d. Trading and AFS securities that meet the definition of Level 2 assets, with haircuts 27,937

e. Trading and AFS securities indicator (sum of items 11.a and 11.b, minus the sum of 11.c and 11.d) 69,562

Section 12 - Level 3 Assets

a. Level 3 assets indicator, including insurance subsidiaries 4,116

Cross-Jurisdictional Activity Indicators

Section 13 - Cross-Jurisdictional Claims

a. Total foreign claims on an ultimate risk basis 722,035

b. Foreign derivative claims on an ultimate risk basis 4,669

c. Cross-jurisdictional claims indicator (sum of items 13.a and 13.b) 726,704

Section 14 - Cross-Jurisdictional Liabilities

a. Foreign liabilities (excluding derivatives and local liabilities in local currency) 713,375

b. Foreign derivative liabilities on an immediate risk basis 5,192

c. Cross-jurisdictional liabilities indicator (sum of items 14.a and 14.b) 718,567

Standard Chartered PLC (SC PLC) is headquartered in London where it is authorised by the UK's Prudential Regulation Authority (PRA), and Standard

Chartered PLC Group and Standard Chartered Bank are regulated by the Financial Conduct Authority (FCA) and the PRA.

Within this document 'the Group' refers to Standard Chartered PLC together with its subsidiary undertakings. Throughout this document unless another currency is specified, the word 'dollar' or symbol $ means United States dollar.

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