KeyBank 2013 Annual Report Download - page 47

Off-Balance Sheet Arrangements and Aggregate Contractual Obligations 74
Off-balance sheet arrangements 74
Variable interest entities 74
Commitments to extend credit or funding 74
Other off-balance sheet arrangements 74
Contractual obligations 75
Guarantees 75
Risk Management 76
Overview 76
Market risk management 77
Trading market risk 77
Management of trading market risks 77
Covered positions 78
VaR and stressed VaR 78
Internal capital adequacy assessment 80
Nontrading market risk 80
Net interest income simulation analysis 80
Economic value of equity modeling 82
Management of interest rate exposure 82
Liquidity risk management 83
Governance structure 83
Factors affecting liquidity 83
Managing liquidity risk 84
Long-term liquidity strategy 84
Sources of liquidity 85
Liquidity programs 85
Liquidity for KeyCorp 85
Our liquidity position and recent activity 86
Credit risk management 86
Credit policy, approval and evaluation 86
Allowance for loan and lease losses 87
Net loan charge-offs 90
Nonperforming assets 92
Operational risk management 94
Cybersecurity 95
Fourth Quarter Results 96
Earnings 96
Net interest income 96
Noninterest income 96
Noninterest expense 96
Provision for loan and lease losses 96
Income taxes 96
Critical Accounting Policies and Estimates 100
Allowance for loan and lease losses 100
Valuation methodologies 101
Derivatives and hedging 103
Contingent liabilities, guarantees and income taxes 103
European Sovereign and Non-Sovereign Debt Exposure 104
Throughout the Notes to Consolidated Financial Statements and Management’s Discussion and Analysis of
Financial Condition and Results of Operations, we use certain acronyms and abbreviations. These terms
are defined in Note 1 (“Summary of Significant Accounting Policies”), which begins on page 115.
33