GroundRules
12 CFR 628.23: Limit on inclusion of third-party capital in total (tier 1 and tier 2) capital.
Where this section sits in the code
- Title 12—Banks and Banking
- CHAPTER VI—FARM CREDIT ADMINISTRATION
- SUBCHAPTER B—FARM CREDIT SYSTEM
- PART 628—CAPITAL ADEQUACY OF SYSTEM INSTITUTIONS
- Subpart C—Definition of Capital
The combined amount of third-party capital instruments that a System institution may include in total (tier 1 and tier 2) capital is equal to the greater of the following:
(a) The then existing limit, if any; or
(b) The lesser of:
(1) Forty percent of total capital, calculated by taking two thirds of the average of the previous 4 quarters of total capital reported on the institution's Call Report filed with the FCA, less any amounts of third-party capital reported in total capital; or
(2) The average of the previous 4 quarters of CET1 capital reported on its Call Report filed with the FCA.
(c) Treatment of assets that are deducted. A System institution must exclude from total risk-weighted assets any item deducted from regulatory capital under this section.
Collected 2026-08-27T02:24:16Z. Source file · JSON