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1 1 1 of section,The content,Summarynamesof page,resolution. Material plan page,Legal 3 page,Description,Description. Memberships,financial Business,information,derivative. in material and page 8page,5 5 page 10,activities,Materialsettlement. Description of systems,supervisory page,operations.
authorities 11page 11,page 12 structure,and Principal. Resolution,processes officers,related page 12 planning. corporate governance,1 1 11 Description,High level of to resolution. description management,of page 13pagesystems,information. resolution strategy 14 page 13,1 Public section, The Recovery and Resolution Plan RRP for Credit Suisse Group AG.
Footnote 1 For the purposes of this document unless the context otherwise requires the terms Credit Suisse Group. CSG Credit Suisse CS the Group we us and our mean, Credit Suisse Group AG and its consolidated subsidiaries Credit Suisse AG is the Swiss bank subsidiary of the Group The term the. Bank means only Credit Suisse AG, anditsconsolidatedsubsidiaries Refertothefootnoteonpage4oftheGroup2012AnnualReport Endfootnote Group addresses. the requirements for the public section of, the US resolution plan as described in the rules implementing section 165 d of the Dodd Frank Act dated November 1 2011 jointly. issued by the Board of Governors of the Federal Reserve System FRB and the Federal Deposit Insurance Corporation FDIC in the. United States US Our RRP also addresses the Guidance for 2 0 1 3 Section 165 d Annual Resolution Plan Submissions by Foreign. Based Covered Companies That Submitted Initial Resolution Plans in 2012 dated April 15 2 0 1 3 and jointly issued by the FRB and. FDIC In addition to the requirements of the FRB and FDIC in the US our RRP also addresses the RRP guidance issued in. Switzerland and in the United Kingdom UK The Swiss Financial Market Supervisory Authority FINMA issued RRP guidance as. contained in FINMA s Recovery and Resolution Guidance Plan dated March 26 2012 Before its abolition on April 1 2 0 1 3 and. replacement by the Financial Conduct Authority FCA and the Prudential Regulation Authority PRA the Financial Services Authority. FSA in the UK issued RRP guidance with assistance from the Bank of England and the H M Treasury as contained in the FSA s. Recovery and Resolution Plans Consultation Paper 11 16 dated August 9 2011 and the FSA s RRP Guidance pack for firms. published alongside the FSA RRP Consultation Paper and subsequent papers including the FSA s Recovery and Resolution Plans. Feedback Statement FS 12 1 dated May 2012 which was accompanied by an updated RRP Information Pack and the FSA s. Statement on Recovery and Resolution Planning dated February 20 2013 Going forward our RRP will also address the RRP. guidance and requirements of other countries as they are issued by the respective regulatory bodies. In order to comply with the rules governing the creation of our RRP we have had to gather and present information regarding our. operations in a way that is different from how we do so for other purposes These differences are a result of the particular. requirements,All governing,financial and theispreparation. other data andofcontents,presented as Decemberof our.
31 RRP and,2012 do not,unless reflect any,otherwise changes to our business strategy. 1 1 Summary of resolution plan, Credit Suisse Group operates as an integrated global bank combining our strengths and expertise in two global divisions Private. Banking Wealth Management and Investment Banking Our divisions are supported by our Shared Services ShS functions which. provide corporate services and business solutions while ensuring a strong compliance culture. Private Banking Wealth Management, In November 2012 we integrated our former Private Banking PB and Asset Management AM divisions into a single new Private. Banking Wealth Management PB WM division including the majority of our securities trading and sales business in Switzerland. which was transferred from the Investment Banking division. Our PB WM division is comprised of our Wealth Management Clients WMC Corporate Institutional Clients C IC and A M. businesses In Wealth Management WMC we serve more than two million clients including ultra high net worth and high net worth. individuals around the globe and private clients in Switzerland making us one of the largest global players Our network comprises. 3 9 1 0 relationship managers in 4 2 countries with more than 3 3 0 offices and 2 2 booking centers Our C IC business serves the. needs of over 100 000 corporations and institutions mainly in Switzerland and is an important provider of financial products and. services Asset Management offers investment solutions and services globally to a wide range of clients including pension funds. governments foundations and endowments corporations and individuals. Investment Banking, Investment Banking IB provides a broad range of financial products and services with a focus on businesses that are client driven. flow based and capital efficient Our products and services include global securities sales trading and execution prime brokerage. capital raising and advisory services as well as comprehensive investment research Our clients include corporations governments. pension funds and institutions around the world We deliver our global investment banking capabilities via regional and local teams. based in all major developed and emerging market centers Our integrated business model enables us to gain a deeper understanding. of our clients and deliver creative high value customized solutions based on expertise from across Credit Suisse. Shared Services, Shared Services provides centralized corporate services and business support for P B W M and IB with services which include the.
following areas CFO General Counsel Chief Risk Officer Talent Branding and Communications One Bank Collaboration and Public. Policy Shared Services acts as an independent control function. Global structure, Our global structure comprises four regions Switzerland Europe Middle East and Africa EMEA Americas and Asia Pacific APAC. Switzerland, In our home market we are a leading bank for private corporate and institutional clients W e employ 19 400 people in Switzerland. Around 2 000 relationship managers at more than 2 0 0 branches offer clients a full range of private banking services IB provides a. broad range of financial services to its Swiss client base while A M offers traditional and alternative investment products and multi. asset class solutions,Europe Middle East and Africa EMEA. Credit Suisse is active in 3 0 countries across the EMEA region with 9 3 0 0 employees working in 75 offices Our regional. headquarters are in the United Kingdom UK The region encompasses both developed markets such as France Germany Italy. Spain and the UK as well as fast growing markets including Russia Poland Turkey and the Middle East. The Americas region comprises our operations in the US Canada the Caribbean and Latin America With 11 300 employees working. in 4 2 cities spanning 14 countries we offer clients local market expertise and access to our full range of global resources across our. two divisions and as an integrated bank,Asia Pacific APAC. Credit Suisse is present in 12 Asia Pacific markets with 7 4 0 0 employees CS has invested substantially in its presence in key. major markets including Australia China Hong Kong Korea Japan and India broadened the scope of its offerings and. continued to grow selected emerging markets franchises PB WM has its principal centers in Singapore and Hong Kong leveraging. the IB activities to deliver integrated solutions and quality investment performance to clients. For further information on our business refer to the Our businesses and Organizational and regional structure sections under the. Information on the Company part of the Group Annual Report 2012. 1 1 1 The names of Material Legal Entities, For purposes of the RRP rules Credit Suisse has identified 23 entities that satisfy the Material Legal Entity MLE requirements and.
guidance issued by FINMA the FRB FDIC and the FSA In general the applicable regulations define a MLE as an entity that is. significant to a Core Business Line CBL refer to chapter 1 1 2 below for a definition of CBLs or a Critical Operation CO defined. as an operation whose discontinuance or disorderly wind down would have a material impact on or pose a threat to the financial. stability of Switzerland the US or the UK The table below lists our MLEs by region. Fig 1 1 Credit Suisse MLEs by region,General row Suisse. MLEs Credit column 1 MLEs,description,Group AGcolumn. end heading 2 Region,Region Switzerland column 3,General entity. MLEs Credit,entity description Swiss,Suisse AG holding. Region Switzerland,description Swiss bank company,MLEs Credit.
US Americas,MLEs Credit Suisse,Suisse Securities,Capital USA LLC. description US,Region US Region,broker dealer,General entity. MLEs Credit,entity description US,Suisse Management. description US OTC derivatives,investment Region US. banking broker dealer,MLEs Credit,General entity,MLEs Credit Suisse.
Suisse USA,description US,AG New Inc Region US,York company. Branch Americas,Region US Americas,General entity,MLEs Credit. entity description New,Suisse Invesco,description ServiceLLC York branch. Entity of Credit,AmericasSuisse AG,MLEs Credit Purchasing. entity LLC Region US,description Service,Suisse AG Cayman.
Branch Americas,Region Americas,Cayman entity,MLEs Credit description. Suisse AG of Creditdescription,Nassau Suisse AG,Region Americas. MLEs Credit,Limited branch General,Region UK Credit entity. Securities,Generaldescription UK,MLEs Credit,entitySuisse securities. International,description UK dealer,bankRegion UK EMEA.
MLEs Credit,General entity,MLEs Credit Suisse UK,description UK. Suisse AG Limited,London Region UK,private bank,Branch Region UKEMEA EMEA. General entity,MLEs Credit,entity description UK,Suisse AG Guernsey. description Guernsey branch of,BranchCredit,branch Suisse. Region EMEA,of Credit AG AG,MLEs Credit,General entity.
MLEs Credit Suisse,HongSingapore,description Singapore. Kong Branch,Limited Region APAC,Region APAC Suisse AG. General entitySuisse,MLEs Credit,Region APAC description Hong. General Securities,entity Kong broker,Japan Limited. description Japan dealer,MLEs Banco,Region Americas.
Brazilian de Investimentos,investment General,bankingentity CS Brasil. description,entity S A broker dealer,MLEs Credit,Region EMEA. MLEs Credit,Region APAC Suisse,General Poland,entity Sp Zo o. entityIndia PrivateWroclaw,description Service,description Service Entity. MLEs Credit,Limited Mumbai Suisse Business,Region APAC Analytics.
General India,entity Private,description Service Entity. 1 1 2 Description of Core Business Lines, For purposes of the RRP rules Credit Suisse has identified 12 global CBLs pursuant to the requirements and guidance issued by. FINMA and the FRB FDIC This identification was conducted in accordance with the applicable regulatory guidance and is not. intended to be a strategic view of Credit Suisse In general under the applicable regulations a CBL is an operation whose failure in. the Group s view would result in a material loss of revenue profit or franchise value The CBLs we have identified for purposes of. resolution planning do not necessarily correspond to the segments and business lines we use for financial reporting or the way in. which our management analyzes our business In particular the operations of our Asset Management business while not representing. a CBL pursuant to the applicable regulatory definitions are nonetheless central to our integrated business model and organization and. are important to the success of our One Bank strategy Similarly a number of business lines in our Investment Banking division. including equity and debt underwriting advisory services and the foreign exchange and commodities business lines of our fixed. income sales and trading business remain vital to our business model and organization without meeting the applicable regulatory. definitions The table below lists each of our Core Business Lines and the division to which they belong. Fig 1 2 Global CBLs,Heading row columnBanking Fixed. Division Investment,Division Investment 1 Division column. Banking Fixed 2 CBLs,Income end heading,CBLs Rate row.
CBLs Securitized Products,Division Investment,Division Investment. Division I Equities Banking Fixed,Banking Fixed,CBLs Equity Income. Income CBLs Credit,Derivatives Products,CBLs Emerging Markets Group EMG. Division I Equities,Division I Equities CBLs Cash,CBLs Prime. Division I Investment Banking Equities,Department CBLs Corporate Bank.
Division Private,CBLs Corporate,Division Private Banking. Institutional,Banking Management,Wealth Management. CBLs Premium,Division Private,CBLs Private Clients. Banking Switzerland,Global EAM,Management,CBLs Private Banking. Division Private Banking,Banking Wealth,APAC Management.
ManagementClients Switzerland, The following chapters provide a high level description of each CBL. Rate Products, Our Rate Products team is a global market maker in cash and derivatives markets and a primary dealer in multiple jurisdictions. including US Europe and Japan This covers the full spectrum of government and agency bonds and swap and flow option products. and enables us to service issuers risk managers and investors in all aspects of their activities W e offer our clients an extensive suite. of investor and liability management products that incorporate innovative leading ideas that price manage risk and structure interest. rate foreign exchange and hybrid solutions in over the counter OTC note and other forms We give our clients access to a global. liquidity and firm financing capability that utilizes repurchase agreements and related instruments to help clients with balance sheet. management and optimization of funding,Securitized Products. Our Securitized Products team delivers a full spectrum of private label trading government guaranteed trading transaction. management structured client solutions and asset financing Securitized Products trades securitizes syndicates underwrites and. provides research for various forms of securities primarily residential mortgage backed securities and asset backed securities Both. the mortgage and asset backed securities are based on underlying pools of assets and include both government and agency. backed as well as private label loans We also have a presence in mortgage servicing through our wholly owned subsidiary Select. Portfolio Servicing SPS,Credit Products, Our Global Credit Products team is a market maker in public debt across the credit spectrum including investment grade high yield. and distressed debt and is a market maker in the credit derivatives market including single name credit default swaps CDS CDS. indices and levered equity strategies W e are a market maker in par loans loan CDS and loan CDS indices as well as distressed non. performing loans Our capital markets businesses are responsible for structuring underwriting and syndicating the full range of. products for our issuer clients including investment grade and leveraged loans investment grade and high yield bonds and unit. transactions We are also a provider of committed financing including bridge and mezzanine finance Our structured credit solutions. include asset swaps negative basis trades skew arbitrage structured funding regulatory capital solutions restructuring and recovery. Emerging Markets Group EMG, Our Fixed Income Emerging Markets team has a global presence with dedicated regional and country teams We bring clients the.
entire spectrum of emerging market products across the key emerging markets of the world in cash and derivatives across foreign. exchange credit interest rates and hybrid asset classes We deliver access to the capital markets as well as specialized financing. trading and risk management expertise,Equity Derivatives. Our Equity Derivatives team specializes in providing customers with a full range of equity related products investment options and. financing solutions as well as sophisticated hedging and risk management expertise and comprehensive execution capabilities to. financial institutions hedge funds asset managers and corporations Products include convertible bonds warrants OTC derivatives. listed derivatives and program trading Equity Derivatives also includes the Fund Linked Product Group which is involved in the. structuring risk management and distribution of structured mutual fund and alternative investment products. Cash Equities, Our Cash Equities team executes client orders and makes markets in listed and OTC cash securities as well as convertible and. derivative securities W e provide liquidity to the market through both capital commitments and risk management and we represent. institutional accounts in the equity marketplace by serving as the communication conduit between clients and equity traders We also. provide clients with research trading ideas and capital commitments and identify trends in the marketplace in order to obtain the best. and most effective execution,Prime Services, Our Prime Services team provides a wide range of services to hedge funds and institutional clients including prime brokerage start up. services capital introductions securities lending synthetics and innovative financing solutions Prime Services provides a globally. integrated multi asset platform across traditional prime brokerage delta one listed derivatives and managed lending. Corporate Bank, The Corporate Bank Group comprises several distinct areas including corporate lending portfolio management portfolio management. analysis and the transaction management group Collectively these groups are responsible for negotiating new loans and. amendments and for managing loan risk exposure and capital limits associated with the Investment Banking department loan. portfolio Business activities consist of loan origination for Credit Suisse led loan transactions and non Credit Suisse led loan. participations The Corporate Bank Group originates loans in support of Investment Banking clients globally with resources located in. New York London and Zurich,Corporate Institutional Clients.
Our Corporate Institutional Clients business is an important provider of financial products and services serving the needs of over. 100 000 corporations and institutions mainly in Switzerland W e provide premium advice and solutions across a broad range of. banking services including lending cash and liquidity management trade finance corporate finance foreign exchange investment. solutions ship and aviation finance global custody and asset and liability management Clients include small and medium sized. enterprises global corporations and commodity traders banks insurance companies and Swiss pension funds. Premium Clients Switzerland Global External Asset Managers. Premium Clients Switzerland Global EAM serves clients with a wealth of more than CHF 25 million and provides a range of wealth. management advisory services and solutions to ultra high net worth and high net worth individuals predominantly based in Switzerland. and provides a dedicated offering and expertise for external asset managers W e deliver innovative and integrated solutions in close. collaboration with Investment Banking and Private Banking Wealth Management Products and offer our clients a distinct value. proposition combining a global reach with a structured advisory process and access to a broad range of sophisticated products and. Private Banking Wealth Management Clients Switzerland. Private Banking Wealth Management Clients Switzerland serves clients with wealth of less than C H F 25 million and provides a. range of banking services to high net worth individual affluent and retail clients predominantly in Switzerland including current. accounts savings accounts loans and credit cards We analyze a client s personal financial situation and prepare investment strategies. based on an individual risk profile of liquid and illiquid assets and present and future liabilities W e offer a range of wealth management. solutions tailored to specific client segments and offer a comprehensive range of investment advice and discretionary asset. management services based on the analysis and recommendations of our global research team. Private Banking Wealth Management APAC, Private Banking Wealth Management APAC is committed to serve predominantly high net worth and ultra high net worth individuals. with a wealth of more than USD 2 million who are based in the APAC region We deliver innovative and integrated solutions in close. collaboration with Investment Banking and offer clients a distinct value proposition combining a global reach with a structured advisory. process and access to a broad range of sophisticated products and services. For further information on our Investment Banking and Private Banking Wealth Management businesses refer to the Our. businesses section of the Group Annual Report 2012. 1 1 3 Summary financial information, The consolidated balance sheet for Credit Suisse Group AG as of December 31 2012 is presented below. Fig 1 3 Consolidated balance sheet for Credit Suisse Group AG as of December 31 2012 in CHF million. Cash and row,2 amoumt from 1 Total,banks assets,end heading. Amoumt 61 763 row,Interest bearing,resale bank,agreementsfundsdeposits. and with banks,securities,securities Amoumt 1 945,borrowing under.
transactions,Securities,Trading value,assets Amoumt 183 455. received as,Amoumt 30 045,at fair collateral,value Amoumt 256 399. Investment,Premises securities,investments,Amoumt 242 223. and equipment Amoumt 3 498,Amoumt 12 022,Amoumt 5 618. Brokerage Amoumt 8 389,intangible assetsAmoumt 45 768.
receivables Amoumt 243,Due assets,liabilities,liabilities. to banks Amoumt 72 912,and equity,Amoumt 881 996,Amoumt 31 014 Amoumt 924 280. securitiesbankdeposits,sold funds,under Amoumt 308 312. repurchase,agreements,transactions,Obligation and securities. to Amoumt 132 721,return securitieslending,as collateral.
Short term at,liabilities fairatvalue,borrowings Amoumt 30 045. fairAmoumt 18 641,value Amoumt 90 816,Other debt Amoumt 148 134. liabilities Amoumt 64 676,Amoumt 57 637,Total equity Amoumt 42 284. shareholders equity Amoumt 35 498,Non controlling interests Amoumt 6 786. For further information on our financial statements refer to the Consolidated financial statements section of the Group Annual Report. Funding sources and uses, We primarily fund our balance sheet through core customer deposits long term debt and shareholders equity A substantial portion of.
our balance sheet is match funded and requires no unsecured funding Match funded balance sheet items consist of assets and. liabilities with close to equal liquidity durations and values so that the liquidity and funding generated or required by the positions are. substantially equivalent Cash and due from banks and reverse repurchase agreements are highly liquid A significant part of our. assets principally unencumbered trading assets that support the securities business is comprised of securities inventories and. collateralized receivables that fluctuate and are generally liquid These liquid assets are available to settle short term liabilities These. assets include our liquidity pool which as of the end of 2012 based on our internet model was CHF 127 billion net of a stress test. level haircut Loans which comprise the largest component of our illiquid assets are funded by our core customer deposits with an. excess coverage of 2 0 as of the end of 2012 down from 2 2 as of the end of 2011 reflecting a higher increase in loans than the. increase in core customer deposits We fund other illiquid assets including real estate private equity and other long term investments. and a haircut for the illiquid portion of securities with long term debt and equity where we try to maintain a substantial funding buffer. Fig 1 4 Balance sheet funding structure as of December 31 2012 in CHF billion. Reverse Balance,repurchase sheet Funding 143 Repurchase. Encumbered,End trading,Funding neutral,payables positive. footnote agreements,assets Footnote,assets 51 1 Primarily. replacement,123 Funding neutral values agreements,and 163 receivables. cashbrokerage,collateral,iabilities Footnote 1 123.
Cash coverage,Unencumbered due from banks,assets Footnote 3 Primarily includessecurities. unencumbered,and excess trading,reverse assets,repurchase unencumbered investment. Other haircuts End,Footnote 4 Excludes,illiquid assets. short term loans,liabilities with agreements,footnote 151 Loans. banks End footnote 237,liabilities 2 2Primarily,brokerage includes.
payables excess,over of funding neutral,Due to banks. Deposit Footnote,of deposit End 54 Short term,5 Excludes due to corresponding. borrowings timeand,banks assets 39,19 certificates. equity 42 footnote,demand 258 Deposit,133 savings include. 60 fiducary 31 Long term debt 148,Assets 924 Liabilities and Equity 924.
Our core customer deposits totaled CHF 2 8 5 billion as of the end of 2012 an increase of 3 compared to CHF 2 7 8 billion as of the. end of 2011 as a result of a growth in the customer deposit base in Private Banking Wealth Management Core customer deposits. are from clients with whom we have a broad and longstanding relationship Core customer deposits exclude deposits from banks and. certificates of deposit W e place a priority on maintaining and growing customer deposits as they have proved to be a stable and. resilient source of funding even in difficult market conditions. While we do maintain a branch of Credit Suisse AG in New York it does not accept retail deposits and the deposits the Branch does. hold are not insured by the FDIC Further we do not own a bank subsidiary in the United States and are therefore not subject to the. RRP requirements applicable to certain insured depository institutions. Treasury is responsible for the development execution and regular updating of our funding plan The plan reflects projected business. growth development of the balance sheet future funding needs and maturity profiles as well as the effects of changing market. conditions, Interest expense on long term debt excluding structured notes is monitored and managed relative to certain indices such as the. London Interbank Offered Rate that are relevant to the financial services industry This approach to term funding best reflects the. sensitivity of both our liabilities and our assets to changes in interest rates Our average funding cost which is allocated to the. divisions remained largely unchanged at December 31 2 0 1 2 as compared to the end of 2011. We continually manage the impact of funding spreads through careful management of our liability maturity mix and opportunistic. issuance of debt The effect of funding spreads on interest expense depends on many factors including the absolute level of the. indices on which our funding is based, We diversify our funding sources by issuing structured notes which are debt securities on which the return is linked to commodities. stocks indices or currencies or other assets W e generally hedge structured notes with positions in the underlying assets or. derivatives Our liquidity planning includes settlement of structured notes We had CHF 3 6 6 billion of structured notes outstanding as. of the end of 2 0 1 2 compared to CHF 35 7 billion as of the end of 2011. We also use collateralized financings including repurchase agreements and securities lending agreements The level of our. repurchase agreements fluctuates reflecting market opportunities client needs for highly liquid collateral such as US treasuries and. agency securities and the impact of balance sheet and risk weighted asset limits In addition matched book trades under which. securities are purchased under agreements to resell and are simultaneously sold under agreements to repurchase with comparable. maturities earn spreads are relatively risk free and are generally related to client activity. Our primary source of liquidity is funding through consolidated entities The funding through non consolidated special purpose entities. and asset securitization activity is immaterial, Securities for funding and capital purposes are issued primarily by the Bank our principal operating subsidiary and a US registrant The. Bank lends funds to its operating subsidiaries and affiliates on both a senior and subordinated basis as needed the latter typically to. meet capital requirements or as desired by management to support business initiatives. For further information on our funding sources and uses refer to the Treasury Risk Balance sheet and Off balance sheet section of. the Group Annual Report 2012, 1 1 4 Description of derivative and hedging activities. We enter into derivative contracts in the normal course of business for market making positioning and arbitrage purposes as well as. for our own risk management needs including mitigation of interest rate foreign exchange and credit risk These derivatives are. generally either privately negotiated OTC contracts or standard contracts transacted through regulated exchanges The Group s most. frequently used freestanding derivative products entered into for trading and risk management purposes include interest rate credit. default and cross currency swaps interest rate and foreign exchange options foreign exchange forward contracts and foreign. exchange and interest rate futures, The Group also enters into contracts that are not considered derivatives in their entirety but include embedded derivative features.
Such transactions primarily include issued and purchased structured debt instruments where the return may be calculated by reference. to an equity security index or third party credit risk or that have non standard interest or foreign exchange terms. On the date a derivative contract is entered into the Group designates it as belonging to one of the following categories. Trading activities, A risk management transaction that does not qualify as a hedge under accounting standards referred to as an economic hedge. A hedge of the fair value of a recognized asset or liability. A hedge of the variability of cash flows to be received or paid relating to a recognized asset or liability or a forecasted transaction. A hedge of a net investment in a foreign operation. The Group is active in most of the principal trading markets and transacts in many popular trading and hedging products As noted. above this includes the use of swaps futures options and structured products such as custom transactions using combinations of. derivatives in connection with its sales and trading activities Trading activities include market making positioning and arbitrage. activities The majority of the Group s derivatives are used for trading activities. Economic hedges arise when the Group enters into derivative contracts for its own risk management purposes but the contracts. entered into do not qualify for hedge accounting under US GAAP These economic hedges include the following types. Interest rate derivatives to manage net interest rate risk on certain core banking business assets and liabilities. Foreign exchange derivatives to manage foreign exchange risk on certain core banking business revenue and expense items as. well as on core banking business assets and liabilities. Credit derivatives to manage credit risk on certain loan portfolios and. Futures to manage risk on equity positions including convertible bonds. Derivatives used in economic hedges are included as trading assets or trading liabilities in the consolidated balance sheets. W e regularly hedge our portfolio to manage our overall risk position adhere to our risk appetite minimize losses facilitate our client. franchise and provide liquidity to the market, For further information on our derivatives and hedging activities refer to the Treasury Risk Balance sheet and Off balance sheet. and Note 3 0 of Consolidated financial statements sections of the Group Annual Report 2012. 1 1 5 Memberships in material payment clearing and settlement systems. In order to facilitate our business we have memberships in major global payment clearing and settlement systems The figure below. includes a list of our memberships in these systems. Fig 1 5 and,Depository Memberships,settlement,Company material payment. systems System,DTC Online name,Depository,Interbank Clearing. Clearing Corporation,euroSIC SIX,Fixed Income Clearing.
London Clearing House,SWIFT Fedwir eCLS Corporation. Group CME Ltd ICE Clear,LCH Clearnet,1 1 6 Description of non US operations. The US regulations require that Credit Suisse provide a description of our non US operations Refer to the business overview in. chapter 1 1 for a description of Credit Suisse s global operations and regional structure Further information on our business is. included in the Our businesses and Organizational and regional structure sections under the Information on the Company part of. the Group Annual Report 2012,1 1 7 Material supervisory authorities. Our operations are regulated by authorities in each of the jurisdictions in which we have offices branches and subsidiaries Central. banks and other bank regulators financial services regulators securities regulators and exchanges and self regulatory organizations. are among the regulatory authorities that oversee our Private Banking Wealth Management and Investment Banking divisions The. figure below includes our material supervisory authorities related to the MLEs and CBLs identified in the RRP. Fig 1 6 Material supervisory authorities of Credit Suisse. Supervisory rowauthority Swiss,column 1end,2 Jurisdiction Supervisory. Financial authority,row Market,Supervisory,Supervisory.
Reserve Authority,System FINMA,authority Board,Jurisdiction of Jurisdiction. United Statesof Switzerland,the Federal,Supervisory. Jurisdiction,Supervisory,Commission authority Federal. United States,authority US,SEC Reserve,Securities,Jurisdiction and. United Bank of New,States York,Supervisory,Supervisory authority New.
State United,authority New York,Jurisdiction,York State. Stock Department,Exchange of,Jurisdiction,Supervisory. Supervisory United,FINRA States,authority Financial. Jurisdiction,authority National Industry,Futures Regulatory. Association,Jurisdiction,Supervisory,Commission,Supervisory United.
CFTC States,authority US Commodity,Jurisdiction,authority UK Prudential Futures. United States,Regulation Trading,Supervisory,Authority PRA. FCA Jurisdiction,authority UK United,Jurisdiction United Kingdom. Supervisory,Supervisory authority Cayman,Jurisdiction Cayman. authority Central Islands,Bank ofdoMonetary,Supervisory.
of the Bahamas,Supervisory,Jurisdiction,Supervisory Jurisdiction Bahamas. authority Securities,Jurisdiction,authority Banco,authority Guernsey Commission. FinancialBrasil,Commission,Supervisory,Singapore Jurisdiction. MAS Guernsey,authority Monetary,Jurisdiction Authority. Singapore of,Supervisory,Supervisory authority Japan.
Jurisdiction Japan,authority Hong Financial,Kong Services. Securities,and Futures,Supervisory,Ministry Commission Jurisdiction. authority Ministry,of Communications and HongAffairs. of Information,Corporate Kong China,Technology Jurisdiction. Supervisory,of Special Economic India,authority Development.
Zone Government Commissioner, For further information on our regulators and supervisors refer to the Regulation and supervision section of the Group Annual Report. 1 1 8 Principal officers, The figure below includes the members of the Executive Board for Credit Suisse as of September 30 2013 The Executive Board is. responsible for the day to day operational management of Credit Suisse It develops and implements the strategic business plans for. the Group overall as well as for the principal businesses subject to approval by the Board of Directors of Credit Suisse Group It. further reviews and coordinates significant initiatives projects and business developments in the divisions regions and in the ShS. functions and establishes Group wide policies The composition of the Executive Board of the Group and the Bank is identical. Fig 1 7 Credit Suisse Group AG Executive Board members as of September 30 2013. Heading row column,Member Brady 1 Member,W Boissard. Dougan column,Role Group 2 Role,Chief end heading row. Member Gael,Member Romeo,Member Tobias,Regional CEO of EMEA.
Cerutti Joint,Guldimann Chief,Role Divisional Executive. Investment,Officer Footnote 1 1,Executive January,Member David 1. End 2014 Joachim,as footnote,Risk Oechslin,Role ShS and. a IT succeed,member of of,SwitzerlandHead,Member Robert Mathers. Member Hans Ulrich,Role Divisional,Management,Joint Head of andofRegional.
Joint Operations,Banking of,Wealth Management,Role Divisional. Member Pamela and,A Regional,Thomas Graham CEO,Chief of Americas. Member Eric,Banking and Communications,M Varvel CEO. Regional Officer,JointofHead,APACofRole ShS,Investment Head Regional Head. Role Divisional, For further information on our Executive Board refer to the Corporate Governance section in the Corporate Governance and.
Compensation part of the Group Annual Report 2012 and any subsequent press release on changes in the Executive Board. 1 1 9 Resolution planning corporate governance structure and processes related to resolution. Recovery and Resolution Office, The Recovery and Resolution Office which is embedded in the global Chief Financial Officer CFO function is responsible for. managing the global RRP process and overall responsibility for the global RRP is with the Group CFO The Recovery and Resolution. Office is responsible for among other things updating the RRP document at least annually or more often as may be required under. applicable regulations and liaising with management and our Regulatory Affairs function on recovery and resolution related topics The. Recovery and Resolution Office is globally coordinated with representatives in each of the regions where we have specific RRP related. regulatory requirements to fulfill currently in Switzerland the US and the UK. The US UK and APAC RRP regional governance follows the same principle as the global RRP governance The executive. responsible for the RRP is the Regional CFO for the Americas EMEA or APAC respectively The Regional Chief Operating Officers. COOs are responsible for maintaining relationships with the regulators and coordinating with them directly to ensure that all regulatory. requirements are adequately addressed in the regions and delivered on a timely basis. Preparation and Approval of the RRP, Any decisions on the RRP design and content have been discussed and agreed in the Design Authority which met regularly and. included key RRP subject matter experts All decisions were subsequently presented to the RRP Steering Committee whose. members included the Group CFO Chair and other Executive Board members as well as the RRP global program office regional. and divisional leads The responsibilities of the RRP Steering Committee include but are not limited to providing executive level. decision making and guidance with respect to the RRP program objectives The RRP was presented to the Executive Board for review. and approval under delegated authority from the Group Board of Directors. 1 1 10 Description of material management information systems. Credit Suisse utilizes a number of key management information systems and applications that directly support management financial. risk operational and regulatory reporting across the organization. Reporting at Credit Suisse is categorized as follows. Management reporting Information required for board senior management and executive level reporting. Financial reporting Information required to provide financial position and performance to senior management and external users. Risk reporting Information required to identify and analyze risks inherent in day to day business operations Includes operational. credit and market risk reports, Operational reporting Information required to provide detailed day to day activities at a transaction level to support key decisions. on a daily basis, Regulatory reporting Reports mandated by regulatory authorities governing the type of business and jurisdiction of operations. Credit Suisse has extensive reporting capabilities that allow for generation of key reports that are produced at defined frequencies. during normal course of business Reports can be produced at Group business division legal entity or function level depending on the. purpose of the report, 1 1 11 High level description of resolution strategy.
The RRP has been developed in response to various regulatory requirements for the unlikely event of the Group s failure This section. includes a high level description of the resolution strategy included in our RRP for our operations in Switzerland the US and the UK. Switzerland, In September 2011 the Swiss Parliament passed the Too Big to Fail legislation relating to systemically important financial institutions. SIFIs The legislation became effective March 1 2012 On January 1 2013 the amended Banking Ordinance has been set into. force Under this legislation SIFIs are required to establish a RRP and provide the RRP to FINMA for approval W e are required to. update the report at least annually The recovery part of the RRP must outline recovery options available to a bank in various severe. stress events including those caused by idiosyncratic systemic capital or liquidity stress scenarios The recovery plan s purpose is to. prepare for the survival of the bank in such stress scenarios As a part of the plan a governance framework must be defined with clear. escalation and decision points and may be based on existing capital and liquidity plans The resolution part of the RRP must. demonstrate that a bank can be unwound in an orderly fashion while ensuring the continuation of systemically relevant functions in. Switzerland including payment services and access to savings deposits in the event of the bank s impending insolvency W e have. opted to meet the Swiss Emergency Plan requirements by pursuing a bridge bank strategy for our relevant functions in Switzerland. and plan to implement a significant number of preparatory measures to support timely and effective resolution. Under a resolution scenario FINMA has significant power to act including the authority to force the sale of all or part of a bank the. restructuring of a bank or the creation of a bridge bank In its August 7 2 0 1 3 position paper Resolution of Global Systemically. Important Banks FINMA announced that its preferred resolution strategy for CS would be a FINMA led Single Point of Entry. resolution strategy to re capitalize and stabilize the bank A single point of entry bail in strategy would recapitalize CS at the top The. single point of entry should stabilize the Group and allow further restructuring as required in order to allow CS to continue the funding. and capitalization of its subsidiaries and avoid resolution of operating subsidiaries. United States, The rules governing the US RRP require that we contemplate the failure of Credit Suisse s US operations under ordinary insolvency. law for Credit Suisse s US operations this means the US Bankruptcy Code the Securities Investor Protection Act and the New York. Banking Law and not under the Orderly Liquidation Authority OLA provisions of Title II of the Dodd Frank Act. In assessing potential strategies for resolving our US operations under the applicable insolvency regimes including the MLEs and. CBLs we have assumed that all MLEs except service entities fail at the same time The RRP for the US focuses on two alternatives. the sale of MLEs CBLs or business components and the orderly wind down of MLEs and CBLs The sale of MLEs CBLs or. business components would contemplate the maintenance of market operations and potentially franchise value although this strategy. may prove challenging in the event of an extended period of distress Certain legal entities business lines or business components. may be marketed individually or in package form The range of potential purchasers may include other broker dealers and banks as. well as hedge funds The wind down of MLEs and CBLs would involve the liquidation of the positions remaining in inventory at the. point of resolution The actual unwind procedures would be determined based on a number of factors at resolution including market. conditions current valuations and the liquidity profile of the remaining portfolio These strategies are not mutually exclusive in. resolution US operations may be resolved under a combination of a sale of MLEs CBLs or business components and a wind down. of remaining businesses and operations,United Kingdom. The UK Banking Act of 2 0 0 9 created a new framework for an insolvency regime focused on financial institutions that are in distress. The RRP guidance published by the FSA before it was abolished and succeeded by the PRA and FCA states that the relevant UK. authorities will determine the strategy for resolving our UK operations based on the information submitted to the authorities within our. RRP In our RRP we have submitted information consistent with the guidance of the relevant UK regulators through June 30 2013. Annexes Name,Applicable exist title,No annexeschapter of document.


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