{"data":{"id":"us/12-cfr-628.23","jurisdiction":"us","citation":"12 CFR 628.23","heading":"Limit on inclusion of third-party capital in total (tier 1 and tier 2) capital.","body":"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:\n(a) The then existing limit, if any; or\n(b) The lesser of:\n(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\n(2) The average of the previous 4 quarters of CET1 capital reported on its Call Report filed with the FCA.\n(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.","path":["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"],"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":"25bd432d850bd17c5c57f9ed74700d1980ef106ddc15474d666124b375e42b51","source_id":"us-cfr","stale":true,"prev":"us/12-cfr-628.22","next":"us/12-cfr-628.24-628.29"},"notice":"GroundRules: Original legal text. Not legal advice."}