{"data":{"id":"us/12-cfr-3.100","jurisdiction":"us","citation":"12 CFR 3.100","heading":"Purpose, applicability, and principle of conservatism.","body":"(a) Purpose. This subpart E establishes:\n(1) Minimum qualifying criteria for national banks or Federal savings associations using institution-specific internal risk measurement and management processes for calculating risk-based capital requirements; and\n(2) Methodologies for such national banks or Federal savings associations to calculate their total risk-weighted assets.\n(b) Applicability. (1) This subpart applies to a national bank or Federal savings association that:\n(i) Is a subsidiary of a global systemically important BHC, as identified pursuant to 12 CFR 217.402;\n(ii) Is a Category II national bank or Federal savings association;\n(iii) Is a subsidiary of a depository institution that uses the advanced approaches pursuant to this subpart (OCC), 12 CFR part 217, subpart E (Board), or 12 CFR part 324 (FDIC), to calculate its risk-based capital requirements;\n(iv) Is a subsidiary of a bank holding company or savings and loan holding company that uses the advanced approaches pursuant to subpart E of 12 CFR part 217 to calculate its risk-based capital requirements; or\n(v) Elects to use this subpart to calculate its risk-based capital requirements.\n(2) A market risk national bank or Federal savings association must exclude from its calculation of risk-weighted assets under this subpart the risk-weighted asset amounts of all covered positions, as defined in subpart F of this part (except foreign exchange positions that are not trading positions, over-the-counter derivative positions, cleared transactions, and unsettled transactions).\n(c) Principle of conservatism. Notwithstanding the requirements of this subpart, a national bank or Federal savings association may choose not to apply a provision of this subpart to one or more exposures provided that:\n(1) The national bank or Federal savings association can demonstrate on an ongoing basis to the satisfaction of the OCC that not applying the provision would, in all circumstances, unambiguously generate a risk-based capital requirement for each such exposure greater than that which would otherwise be required under this subpart;\n(2) The national bank or Federal savings association appropriately manages the risk of each such exposure;\n(3) The national bank or Federal savings association notifies the OCC in writing prior to applying this principle to each such exposure; and\n(4) The exposures to which the national bank or Federal savings association applies this principle are not, in the aggregate, material to the national bank or Federal savings association.","path":["Title 12—Banks and Banking","CHAPTER I—COMPTROLLER OF THE CURRENCY, DEPARTMENT OF THE TREASURY","PART 3—CAPITAL ADEQUACY STANDARDS","Subpart E—Risk-Weighted Assets—Internal Ratings-Based and Advanced Measurement Approaches"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-12.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:16Z","sha256":"128d71d09e9a0b6278941b643ff6cf78e9015684e7e8fbb024c4ab0928bb98d1","source_id":"us-cfr","stale":true,"prev":"us/12-cfr-3.64-3.99","next":"us/12-cfr-3.101"},"notice":"GroundRules: Original legal text. Not legal advice."}