Source: https://www.law.cornell.edu/cfr/text/12/3.1
Timestamp: 2015-03-27 14:15:38
Document Index: 379225262

Matched Legal Cases: ['art 3', '§ 3', '§ 3', '§ 3', 'art 167', '§ 3', 'art 167', '§ 3', '§ 3', 'art 167', '§ 3', '§ 3', '§ 3', '§ 3', '§ 3', '§ 3', '§ 3', 'art 167', '§ 3', 'art 3', 'arts 3', 'art 3']

12 CFR 3.1 - Purpose, applicability, reservations of authority, and timing. | LII / Legal Information Institute
CFR › Title 12 › Chapter I › Part 3 › Subpart A › Section 3.1 12 CFR 3.1 - Purpose, applicability, reservations of authority, and timing.
There are 4 Updates appearing in the Federal Register for 12 CFR 3. View below or at eCFR (GPOAccess)
Purpose. This part establishes minimum capital requirements and overall capital adequacy standards for national banks or Federal savings associations. This part includes methodologies for calculating minimum capital requirements, public disclosure requirements related to the capital requirements, and transition provisions for the application of this part.
Limitation of authority. Nothing in this part shall be read to limit the authority of the OCC to take action under other provisions of law, including action to address unsafe or unsound practices or conditions, deficient capital levels, or violations of law or regulation, under section 8 of the Federal Deposit Insurance Act.
Applicability. Subject to the requirements in paragraphs (d) and (f) of this section:
Minimum capital requirements and overall capital adequacy standards. Each national bank or Federal savings association must calculate its minimum capital requirements and meet the overall capital adequacy standards in subpart B of this part.
Regulatory capital. Each national bank or Federal savings association must calculate its regulatory capital in accordance with subpart C of this part.
Risk-weighted assets. (i) Each national bank or Federal savings association must use the methodologies in subpart D of this part (and subpart F of this part for a market risk national bank or Federal savings association) to calculate standardized total risk-weighted assets.
Each advanced approaches national bank or Federal savings association must use the methodologies in subpart E (and subpart F of this part for a market risk national bank or Federal savings association) to calculate advanced approaches total risk-weighted assets.
Disclosures. (i) Except for an advanced approaches national bank or Federal savings association that is making public disclosures pursuant to the requirements in subpart E of this part, each national bank or Federal savings association with total consolidated assets of $50 billion or more must make the public disclosures described in subpart D of this part.
Each market risk national bank or Federal savings association must make the public disclosures described in subpart F of this part.
Each advanced approaches national bank or Federal savings association must make the public disclosures described in subpart E of this part.
Reservation of authority—(1) Additional capital in the aggregate. The OCC may require a national bank or Federal savings association to hold an amount of regulatory capital greater than otherwise required under this part if the OCC determines that the national bank's or Federal savings association's capital requirements under this part are not commensurate with the national bank's or Federal savings association's credit, market, operational, or other risks.
Regulatory capital elements. (i) If the OCC determines that a particular common equity tier 1, additional tier 1, or tier 2 capital element has characteristics or terms that diminish its ability to absorb losses, or otherwise present safety and soundness concerns, the OCC may require the national bank or Federal savings association to exclude all or a portion of such element from common equity tier 1 capital, additional tier 1 capital, or tier 2 capital, as appropriate.
Notwithstanding the criteria for regulatory capital instruments set forth in subpart C of this part, the OCC may find that a capital element may be included in a national bank's or Federal savings association's common equity tier 1 capital, additional tier 1 capital, or tier 2 capital on a permanent or temporary basis consistent with the loss absorption capacity of the element and in accordance with § 3.20(e).
Risk-weighted asset amounts. If the OCC determines that the risk-weighted asset amount calculated under this part by the national bank or Federal savings association for one or more exposures is not commensurate with the risks associated with those exposures, the OCC may require the national bank or Federal savings association to assign a different risk-weighted asset amount to the exposure(s) or to deduct the amount of the exposure(s) from its regulatory capital.
Total leverage. If the OCC determines that the leverage exposure amount, or the amount reflected in the national bank's or Federal savings association's reported average total consolidated assets, for an on- or off-balance sheet exposure calculated by a national bank or Federal savings association under § 3.10 is inappropriate for the exposure(s) or the circumstances of the national bank or Federal savings association, the OCC may require the national bank or Federal savings association to adjust this exposure amount in the numerator and the denominator for purposes of the leverage ratio calculations.
Consolidation of certain exposures. The OCC may determine that the risk-based capital treatment for an exposure or the treatment provided to an entity that is not consolidated on the national bank's or Federal savings association's balance sheet is not commensurate with the risk of the exposure and the relationship of the national bank or Federal savings association to the entity. Upon making this determination, the OCC may require the national bank or Federal savings association to treat the exposure or entity as if it were consolidated on the balance sheet of the national bank or Federal savings association for purposes of determining the national bank's or Federal savings association's risk-based capital requirements and calculating the national bank's or Federal savings association's risk-based capital ratios accordingly. The OCC will look to the substance of, and risk associated with, the transaction, as well as other relevant factors the OCC deems appropriate in determining whether to require such treatment.
Other reservation of authority. With respect to any deduction or limitation required under this part, the OCC may require a different deduction or limitation, provided that such alternative deduction or limitation is commensurate with the national bank's or Federal savings association's risk and consistent with safety and soundness.
Notice and response procedures. In making a determination under this section, the OCC will apply notice and response procedures in the same manner as the notice and response procedures in § 3.404.
Timing. (1) Subject to the transition provisions in subpart G of this part, an advanced approaches national bank or Federal savings association that is not a savings and loan holding company must:
Calculate risk-weighted assets in accordance with the general risk-based capital rules under appendix A to this part and, if applicable, subpart F of this part (national banks), or 12 CFR part 167 and, if applicable, subpart F of this part (Federal savings associations) 1 and substitute such risk-weighted assets for standardized total risk-weighted assets for purposes of § 3.10;
1 For the purpose of calculating its general risk-based capital ratios from January 1, 2014 to December 31, 2014, an advanced approaches national bank or Federal savings association shall adjust, as appropriate, its risk-weighted asset measure (as that amount is calculated under appendix A to this part, Sec. 3 and, if applicable, subpart F of this part (national banks), or 12 CFR part 167 and, if applicable, subpart F of this part (Federal savings associations) in the general risk-based capital rules) by excluding those assets that are deducted from its regulatory capital under § 3.22.
If applicable, calculate general market risk equivalent assets in accordance with appendix B to this part, section 4(a)(3) (national banks) and substitute such general market risk equivalent assets for standardized market risk-weighted assets for purposes of § 3.20(d)(3); and
Substitute the corresponding provision or provisions of appendix A to this part, and, if applicable, appendix B to this part (national banks), or 12 CFR part 167 (Federal savings associations) for any reference to subpart D of this part in: § 3.121(c); § 3.124(a) and (b); § 3.144(b); § 3.154(c) and (d); § 3.202(b) (definition of covered position in paragraph (b)(3)(iv)); and § 3.211(b);2
2 In addition, for purposes of § 3.201(c)(3), from January 1, 2014 to December 31, 2014, for any circumstance in which the OCC may require a national bank or Federal savings association to calculate risk-based capital requirements for specific positions or portfolios under subpart D of this part, the OCC will instead require the national bank or Federal savings association to make such calculations according to appendix A to this part and, if applicable, subpart F of this part (national banks), or 12 CFR part 167 and, if applicable, subpart F of this part (Federal savings associations).
Beginning on January 1, 2014, calculate and maintain minimum capital ratios in accordance with subparts A, B, and C of this part, provided, however, that such national bank or Federal savings association must:
From January 1, 2015 to December 31, 2017, an advanced approaches national bank or Federal savings association:
Must calculate a supplementary leverage ratio in accordance with § 3.10(c), and must report the calculated supplementary leverage ratio on any applicable regulatory reports.
Subject to the transition provisions in subpart G of this part, a national bank or Federal savings association that is not an advanced approaches national bank or Federal savings association or a savings and loan holding company that is an advanced approaches national bank or Federal savings association must:
Beginning on January 1, 2015, calculate and maintain minimum capital ratios in accordance with subparts A, B and C of this part, provided, however, that from January 1, 2015 to December 31, 2017, a savings and loan holding company that is an advanced approaches national bank or Federal savings association:
Beginning on January 1, 2016, and subject to the transition provisions in subpart G of this part, a national bank or Federal savings association is subject to limitations on distributions and discretionary bonus payments with respect to its capital conservation buffer and any applicable countercyclical capital buffer amount, in accordance with subpart B of this part.
No national bank or Federal savings association that is not an advanced approaches bank or advanced approaches savings association is subject to this part 3 until January 1, 2015.
Title 12 published on 2014-01-01The following are only the Rules published in the Federal Register after the published date of Title 12.For a complete list of all Rules, Proposed Rules, and Notices view the Rulemaking tab.2014-12-30; vol. 79 # 249 - Tuesday, December 30, 201479 FR 78287 - Regulatory Capital Rules, Liquidity Coverage Ratio: Interim Final Revisions to the Definition of Qualifying Master Netting Agreement and Related Definitions
typeregulations.gov FR Doc.2014-30218 RIN1557-AD91 Docket No.ID OCC-2014-0028 Regulations Q andWW Docket No.R-1507 DEPARTMENT OF THE TREASURY, FEDERAL RESERVE SYSTEM, Office of the Comptroller of the Currency Interim final rule with request for comment. This rule is effective on January 1, 2015. Comments must be received on or before March 3, 2015. 12 CFR Parts 3 and 50 SummaryThe OCC and Board (collectively, the agencies) invite comment on an interim final rule that amends the definition of “qualifying master netting agreement” under the regulatory capital rules, and the liquidity coverage ratio rule, as well as under the lending limits rule applicable to national banks and Federal savings associations. The agencies also are proposing to amend the definitions of “collateral agreement,” “eligible margin loan,” and “repo-style transaction” under the regulatory capital rules. The amendments are designed to ensure that the regulatory capital, liquidity, and lending limits treatment of certain financial contracts is not affected by implementation of special resolution regimes in foreign jurisdictions or by the International Swaps and Derivative Association Resolution Stay Protocol.
2014-09-26; vol. 79 # 187 - Friday, September 26, 201479 FR 57725 - Regulatory Capital Rules: Regulatory Capital, Revisions to the Supplementary Leverage Ratio
Title 12 published on 2014-01-01The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 12 CFR 3 after this date.2014-12-30; vol. 79 # 249 - Tuesday, December 30, 201479 FR 78287 - Regulatory Capital Rules, Liquidity Coverage Ratio: Interim Final Revisions to the Definition of Qualifying Master Netting Agreement and Related Definitions
2014-12-18; vol. 79 # 243 - Thursday, December 18, 201479 FR 75455 - Regulatory Capital Rules: Regulatory Capital, Proposed Revisions Applicable to Banking Organizations Subject to the Advanced Approaches Risk-Based Capital Rule
typeregulations.gov FR Doc.2014-28690 RIN1557-AD88 RegulationQ Docket No.ID OCC-2014-0025 Docket No.R-1502 FEDERAL RESERVE SYSTEM, FEDERAL DEPOSIT INSURANCE CORPORATION, DEPARTMENT OF TREASURY, Office of the Comptroller of the Currency Joint notice of proposed rulemaking (NPR). Comments must be received no later than February 17, 2015. 12 CFR Part 3 SummaryThe Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (Board), and the Federal Deposit Insurance Corporation (FDIC) (collectively, the agencies) are seeking comment on an NPR that would clarify, correct, and update aspects of the agencies&apos; regulatory capital rule applicable to banking organizations that are subject to the advanced approaches risk-based capital rule (advanced approaches banking organizations). The proposed revisions are largely driven by observations made by the agencies during the parallel-run review process of advanced approaches banking organizations. They are also intended to enhance consistency of the U.S. regulations with international standards for use of the advanced approaches rule.