CIBC Mellon Trust Company - Regulatory Capital Requirements
The following information relates to CIBC Mellon Trust Company (CMTC) which is a federally regulated financial institution, and supervised by the Office of the Superintendent of Financial Institutions Canada (OSFI). For regulatory capital purposes, CMTC has elected to apply the basic indicator approach for operational risk and the standardized approach for credit risk. CMTC is a privately and jointly held company of CIBC and BNY Mellon. The following disclosure is based on its regulatory capital disclosure, and is not considered proprietary.
CMTC manages risk within tolerance levels established by our management committees and approved by the Board of Directors and its committees. This risk assessment is performed in conjunction with an assessment of CMTC’s capital position to support current and future activities. CMTC’s risk management program is administered by a separate, independent risk management group and is achieved through a comprehensive framework of measurement, monitoring and control policies, procedures and standards. In addition, key risk management policies are approved or renewed by the applicable board and management committees regularly. CMTC does not actively grant credit but manages the credit risk associated with its investment portfolio through its credit risk management policy and the asset and liability committee (ALCO).
Capital structure
Total capital for CMTC consists entirely of tier one capital (common shares and retained earnings).
|
($ 000s) |
Q4 2010 |
Q1 2011 |
Q2 2011 |
Q3 2011 |
Q4 2011 |
|
Tier 1 Capital |
|
|
|
|
|
|
Share Capital |
99,789 |
99,789 |
99,789 |
99,789 |
99,789 |
|
Retained Earnings |
165,017 |
208,348 |
215,906 |
221,810 |
229,666 |
|
Innovative instruments |
0 |
0 |
0 |
0 |
0 |
|
Gross Tier 1 Capital |
264,806 |
308,137 |
315,695 |
321,599 |
329,455 |
|
Deductions including goodwill |
2,000 |
0 |
0 |
0 |
0 |
|
Tier One Capital |
262,806 |
308,137 |
315,695 |
321,599 |
329,455 |
|
Minority interests in subsidiaries |
0 |
0 |
0 |
0 |
0 |
|
Tier 2 Capital |
0 |
0 |
0 |
0 |
0 |
|
Tier 3 Capital |
0 |
0 |
0 |
0 |
0 |
|
Total Tier 2 and Tier 3 Capital |
0 |
0 |
0 |
0 |
0 |
|
Total Capital |
262,806 |
308,137 |
315,695 |
321,599 |
329,455 |
Capital adequacy
CMTC is strongly capitalized and is well above minimum regulatory capital requirements.
|
($ 000s) |
Q4 2010 |
Q1 2011 |
Q2 2011 |
Q3 2011 |
Q4 2011 |
|
Credit Risk-Weighted Assets |
|
|
|
|
|
|
On - balance sheet |
467,025 |
563,240 |
435,147 |
724,230 |
615,531 |
|
Off - balance sheet |
0 |
0 |
0 |
0 |
0 |
|
Total Adjusted Risk-Weighted Assets For Credit Risk |
467,025 |
563,240 |
435,147
|
724,230
|
615,531 |
|
Market Risk Items |
0 |
0 |
0 |
0 |
0 |
|
Risk-Weighted Assets For Operational Risk |
146,151 |
138,138 |
129,655
|
119,987
|
113,598 |
|
Total Risk-Weighted Assets |
613,176 |
701,378 |
564,802
|
844,217 |
729,129 |
|
Total Tier One Capital |
262,806
|
308,137 |
315,695
|
321,599 |
329,455 |
|
Total Tier One Capital Ratio |
42.86 |
43.93
|
55.89 |
38.09 |
45.18 |