12 C.F.R. Subpart B—Minimum Capital Ratios
Title 12 - Banks and Banking
This subpart is applicable to all banks unless the Office determines, pursuant to the procedures set forth in subpart C, that different minimum capital ratios are appropriate for an individual bank based upon its particular circumstances, or unless different minimum capital ratios have been established or are established for an individual bank in a written agreement or a temporary or final order pursuant to 12 U.S.C. 1818 (b) or (c), or as a condition for approval of an application. (a) Risk-based capital ratio. All national banks must have and maintain the minimum risk-based capital ratio as set forth in appendix A (and, for certain banks, in appendix B). (b) Total assets leverage ratio. All national banks must have and maintain Tier 1 capital in an amount equal to at least 3.0 percent of adjusted total assets. (c) Additional leverage ratio requirement. An institution operating at or near the level in paragraph (b) of this section should have well-diversified risks, including no undue interest rate risk exposure; excellent control systems; good earnings; high asset quality; high liquidity; and well managed on-and off-balance sheet activities; and in general be considered a strong banking organization, rated composite 1 under the Uniform Financial Institutions Rating System (CAMELS) rating system of banks. For all but the most highly-rated banks meeting the conditions set forth in this paragraph (c), the minimum Tier 1 leverage ratio is 4 percent. In all cases, banking institutions should hold capital commensurate with the level and nature of all risks. [55 FR 38800, Sept. 21, 1990, as amended at 61 FR 47367, Sept. 6, 1996; 64 FR 10199, Mar. 2, 1999] Effective December 31, 1990, any bank having capital ratios less than the minimums required under §3.6 (a) and (b) shall, within 60 days, submit to the OCC a plan describing the means and schedule by which the bank shall achieve the applicable minimum capital ratios. The plan may be considered acceptable unless the bank is notified to the contrary by the OCC. A bank in compliance with an acceptable plan to achieve the applicable minimum capital ratios will not be deemed to be in violation of §3.6. [55 FR 38800, Sept. 21, 1990] When, in the opinion of the Office the circumstances so require, a bank may be authorized to have less than the minimum capital ratios in §3.6 during a time period specified by the Office.
Title 12: Banks and Banking
PART 3—MINIMUM CAPITAL RATIOS; ISSUANCE OF DIRECTIVES
Subpart B—Minimum Capital Ratios
§ 3.5 Applicability.
§ 3.6 Minimum capital ratios.
§ 3.7 Plan to achieve minimum capital ratios.
§ 3.8 Reservation of authority.
