Source: http://www.law.cornell.edu/cfr/text/12/165.4
Timestamp: 2014-10-02 10:39:18
Document Index: 670087367

Matched Legal Cases: ['art 165', '§ 165', '§ 116', '§ 116', '§ 165', '§ 165', '§ 5412']

12 CFR 165.4 - Capital measures and capital category definitions. | LII / Legal Information Institute
CFR › Title 12 › Chapter I › Part 165 › Section 165.4 12 CFR 165.4 - Capital measures and capital category definitions.
§ 165.4
For purposes of section 38 and this part, the relevant capital measures shall be:
The total risk-based capital ratio;
The Tier 1 risk-based capital ratio; and
Capital categories.
For purposes of section 38 and this part, a Federal savings association shall be deemed to be:
Well capitalized if the savings association:
Has a total risk-based capital ratio of 10.0 percent or greater; and
Has a Tier 1 risk-based capital ratio of 6.0 percent or greater; and
Has a leverage ratio of 5.0 percent or greater; and
Is not subject to any written agreement, order, capital directive, or prompt corrective action directive issued by the OCC or OTS under section 8 of the FDI Act, the International Lending Supervision Act of 1983 (12 U.S.C. 3907), the Home Owners' Loan Act (12 U.S.C. 1464(t)(6)(A)(ii)), or section 38 of the FDI Act, or any regulation thereunder, to meet and maintain a specific capital level for any capital measure.
Adequately capitalized if the savings association:
Has a total risk-based capital ratio of 8.0 percent or greater; and
Has a Tier 1 risk-based capital ratio of 4.0 percent or greater; and
A leverage ratio of 4.0 percent or greater; or
A leverage ratio of 3.0 percent or greater if the savings association is assigned a composite rating of 1, as composite rating is defined in § 116.5(c) of this chapter; and
Does not meet the definition of a well capitalized savings association.
Undercapitalized if the savings association:
Has a total risk-based capital ratio that is less than 8.0 percent; or
Has a Tier 1 risk-based capital ratio that is less than 4.0 percent; or
Except as provided in paragraph (b)(3)(iii)(B) of this section, has a leverage ratio that is less than 4.0 percent; or
Has a leverage ratio that is less than 3.0 percent if the savings association is assigned a composite rating of 1, as composite rating is defined in § 116.5(c) of this chapter.
Significantly undercapitalized if the savings association has:
A total risk-based capital ratio that is less than 6.0 percent; or
A Tier 1 risk-based capital ratio that is less than 3.0 percent; or
A leverage ratio that is less than 3.0 percent.
Critically undercapitalized if the savings association has a ratio of tangible equity to total assets that is equal to or less than 2.0 percent.
Reclassification based on supervisory criteria other than capital.
The OCC may reclassify a well capitalized Federal savings association as adequately capitalized and may require an adequately capitalized or undercapitalized Federal savings association to comply with certain mandatory or discretionary supervisory actions as if the savings association were in the next lower capital category (except that the OCC may not reclassify a significantly undercapitalized savings association as critically undercapitalized) (each of these actions are hereinafter referred to generally as “reclassifications”) in the following circumstances:
The OCC has determined, after notice and opportunity for hearing pursuant to § 165.8(a) of this part, that the savings association is in an unsafe or unsound condition; or
The OCC has determined, after notice and an opportunity for hearing pursuant to § 165.8(a) of this part, that the savings association received a less-than-satisfactory rating for any rating category (other than in a rating category specifically addressing capital adequacy) under the Uniform Financial Institutions Rating System, or an equivalent rating under a comparable rating system adopted by the OCC; and has not corrected the conditions that served as the basis for the less than satisfactory rating. Ratings under this paragraph (c)(2) refer to the most recent ratings (as determined either on-site or off-site by the most recent examination) of which the savings association has been notified in writing.
This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.United States CodeU.S. Code: Title 12 - BANKS AND BANKING12 U.S. Code § -§ 5412 - Powers and duties transferred