At J.P. Morgan, we are focused on the safety and security of our clients’ assets—in times of market stability, as well as market volatility.

There is still a great deal of uncertainty around the global impact of the coronavirus, as the death toll continues to rise and the economic markets remain unsteady. Central banks have swiftly stepped in to offer their support and reinforce their commitment to keeping the financial system running smoothly; however, the situation continues to evolve.

In times like these, it is important to reassess where your deposits and funds are held, and to ensure they are held at financial institution(s) that offer you the security you expect from a global leader.

When considering who to bank with, you should be aware that deposit guarantee or insurances are limited and only protect your eligible cash deposit up to a certain amount:

Please see disclosures for more information.

A fortress balance sheet

We describe our balance sheet as a fortress because we’re in a position of strength to withstand unexpected events, such as the coronavirus, and the severe market disruptions they can cause. There are four reasons why your cash deposits are secure with us:

  1. We have a strong capital position with a Tier 1 Common Ratio of 12.4%.1 We also maintain ~US$400 billion of total loss-absorbing resources2, 3 to ensure we can weather any economic downturn or financial crisis for a prolonged period of time.
  2. Our liquidity position is robust, with US$545 billion of high-quality liquid assets,2, 4 mainly in cash on deposit at central banks and in highly liquid securities to cover immediate liquidity needs.
  3. We manage a strong global business with diversified sources of revenue across the world, which delivered US$36.4 billion net income in 2019.2
  4. We’re not just strong at a group level. Our regional legal entities are committed to complying with their local regulations around capital requirements and liquidity, which are designed to protect your deposits against a range of risks.

Our custodial entities

As your custodian bank, your assets are held at one of the following licensed bank entities:

A table showing all the licensed bank entities in Europe, North America and Singapore.

J.P. Morgan custodian banks are prohibited from re-hypothecating or lending, for their own purposes, assets that are held in a client’s custody, asset or investment management account. In addition, JPMorgan Chase Bank, N.A., when acting as a trustee or in another fiduciary capacity, cannot lend fiduciary assets, unless specifically authorized to do so by the trust instrument or applicable law.5

Money market fund reforms

At J.P. Morgan Private Bank, many of our clients own money market mutual funds (MMFs) managed by J.P. Morgan Asset Management (JPMAM).6 In times of market volatility, when clients are concerned about liquidity and capital preservation, it is important to understand the ways that money market funds have evolved since the global financial crisis of 2008.

Money market funds have undergone significant reforms, both in the United States and Europe, with the intent to provide greater transparency and resiliency in times of market stress. In the United States, this includes improved pricing transparency and the introduction of liquidity fees and redemption gates to mitigate heavy redemptions in stressed markets. In Europe, these reforms provide investors with a higher degree of optionality when investing in money market funds, designating as short-term or standard, and clarifying three types of net asset value (NAV).

As importantly, recently in the United States, the Federal Reserve began taking action in support of money market funds by establishing the Money Market Mutual Fund Liquidity Facility (MMLF) to provide liquidity to prime money market funds. The program will allow banks and broker-dealers to finance purchases of eligible securities from prime money market funds, thus supporting their liquidity.

Looking forward

Throughout the worst days of the financial crisis in 2008, we provided a safe harbor in a time of uncertainty. Since then, we’ve continued to build resiliency, and today our firm is one of the world’s best-capitalized financial institutions, with one of the highest credit ratings:

Source: Long-term issuer rating for JPMorgan Chase Bank, N.A.
A table showing our exemplary credit ratings. Moody’s Investor Service, Aa2. Standard & Poor’s, A+. Fitch Ratings, AA.

We don’t yet know when our lives or financial markets will return to normal, but we can continue to offer you the reassurance that comes with knowing your assets are safe and secure.

If you have any questions about your deposits or money market funds, please speak to your J.P. Morgan team member.


1 Represents estimated common equity Tier 1 (“CET1”) capital and ratio under the Basel III Fully Phased-In capital rules to which the firm will be subject as of January 1, 2019. Common equity Tier 1 (“CET1”) capital, Tier 1 capital, Total capital, risk-weighted assets (“RWA”) and the CET1, Tier 1 capital and total capital ratios and the supplementary leverage ratio (“SLR”) under the Basel III Fully Phased-In capital rules, to which the firm will be subject commencing January 1, 2019, are considered key regulatory capital measures. These measures are used by management, bank regulators, investors and analysts to assess and monitor the firm’s capital position. For additional information on these measures, see Capital Risk Management on pages 85–92 of the firm’s Annual Report on Form 10-K for the year ended December 31, 2019.

2 Source: JPMorgan Chase & Co.’s Annual Report on Form 10-K for the year ended December 31, 2019.

3 Total loss-absorbing resources includes long-term debt total loss-absorbing capital eligible assets, preferred stock, CET1 and loan loss reserves. External eligible long-term debt of US$162 billion (bail-in-able) to replenish CET1, adequate to recapitalize to 11%+ CET1 in Title II, includes haircuts for maturity.

4 High-quality liquid assets refers to unencumbered liquid assets, such as cash and certain marketable securities, which meet strict regulatory requirements that they can easily and immediately convert to cash.

5 Securities in a margin account pledged as collateral for margin obligations may be re-hypothecated or used by our broker-dealer in the conduct of its business, as authorized by the margin account agreement.

6 We also offer money market funds issued by BlackRock as an alternative in our Investment Management portfolios.