Source: https://www.law.cornell.edu/cfr/text/12/208.73
Timestamp: 2017-04-28 20:11:28
Document Index: 18045793

Matched Legal Cases: ['art 208', '§ 208', '§ 208', '§ 208', '§ 208', '§ 208', '§ 217', '§ 208', 'art 208']

12 CFR 208.73 - What additional provisions are applicable to state member banks with financial subsidiaries? | US Law | LII / Legal Information Institute
CFR › Title 12 › Chapter II › Subchapter A › Part 208 › Subpart G › Section 208.73 12 CFR 208.73 - What additional provisions are applicable to state member banks with financial subsidiaries?
§ 208.73 What additional provisions are applicable to state member banks with financial subsidiaries?
(a)Capital deduction required prior to January 1, 2015, for state member banks that are not advanced approaches banks (as defined in § 208.41). A state member bank that controls or holds an interest in a financial subsidiary must comply with the following rules in determining its compliance with applicable regulatory capital standards (including the well capitalized standard of § 208.71(a)(1)):
(2) For purposes of determining the bank's risk-based capital ratios under appendix A of this part, the bank must - (i) Deduct 50 percent of the aggregate amount of its outstanding equity investment (including retained earnings) in all financial subsidiaries from both the bank's Tier 1 capital and Tier 2 capital; and
(3) For purposes of determining the bank's leverage capital ratio under appendix B of this part, the bank must - (i) Deduct 50 percent of the aggregate amount of its outstanding equity investment (including retained earnings) in all financial subsidiaries from the bank's Tier 1 capital; and
(4) For purposes of determining the bank's ratio of tangible equity to total assets under § 208.43(b)(5), the bank must deduct the entire amount of the bank's outstanding equity investment (including retained earnings) in all financial subsidiaries from the bank's tangible equity and total assets.
(b)Capital requirements for advanced approaches banks (as defined in § 208.41) and, after January 1, 2015, all state member banks. Beginning on January 1, 2014, for a state member bank that is an advanced approaches bank, and beginning on January 1, 2015 for all state member banks, a state member bank that controls or holds an interest in a financial subsidiary must comply with the rules set forth in § 217.22(a)(7) of Regulation Q ( 12 CFR 217.22(a)(7)) in determining its compliance with applicable regulatory capital standards (including the well capitalized standard of § 208.71(a)(1)).
(c)Financial statement disclosure of capital deduction. Any published financial statement of a state member bank that controls or holds an interest in a financial subsidiary must, in addition to providing information prepared in accordance with generally accepted accounting principles, separately present financial information for the bank reflecting the capital deduction and adjustments required by paragraph (a) of this section.
(d)Safeguards for the bank. A state member bank that establishes, controls or holds an interest in a financial subsidiary must:
(e)Application of Sections 23A and 23B of the Federal Reserve Act. For purposes of sections 23A and 23B of the Federal Reserve Act ( 12 U.S.C. 371c, 371c-1):
(2) The restrictions contained in section 23A(a)(1)(A) of the Federal Reserve Act ( 12 U.S.C. 371c(a)(1)(A)) shall not apply with respect to covered transactions between the bank and any individual financial subsidiary of the bank;
(f)Application of anti-tying prohibitions. A financial subsidiary of a state member bank shall be deemed a subsidiary of a bank holding company and not a subsidiary of the bank for purposes of the anti-tying prohibitions of section 106 of the Bank Holding Company Act Amendments of 1970 ( 12 U.S.C. 1971et seq.).
Title 12 published on 11-Apr-2017 03:57The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 12 CFR Part 208 after this date.2016-12-16; vol. 81 # 242 - Friday, December 16, 201681 FR 90949 - Expanded Examination Cycle for Certain Small Insured Depository Institutions and U.S. Branches and Agencies of Foreign Banks