12 C.F.R. § 206.2 Definitions.
Title 12 - Banks and Banking
As used in this part, unless the context requires otherwise: (a) Bank means an insured depository institution, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), and includes an insured national bank, state bank, District bank, or savings association, and an insured branch of a foreign bank. (b) Commonly-controlled correspondent means a correspondent that is commonly controlled with the bank and for which the bank is subject to liability under section 5(e) of the Federal Deposit Insurance Act. A correspondent is considered to be commonly controlled with the bank if: (1) 25 percent or more of any class of voting securities of the bank and the correspondent are owned, directly or indirectly, by the same depository institution or company; or (2) Either the bank or the correspondent owns 25 percent or more of any class of voting securities of the other. (c) Correspondent means a U.S. depository institution or a foreign bank, as defined in this part, to which a bank has exposure, but does not include a commonly controlled correspondent. (d) Exposure means the potential that an obligation will not be paid in a timely manner or in full. “Exposure” includes credit and liquidity risks, including operational risks, related to intraday and interday transactions. (e) Foreign bank means an institution that: (1) Is organized under the laws of a country other than the United States; (2) Engages in the business of banking; (3) Is recognized as a bank by the bank supervisory or monetary authorities of the country of the bank's organization; (4) Receives deposits to a substantial extent in the regular course of business; and (5) Has the power to accept demand deposits. (f) Primary federal supervisor has the same meaning as the term “appropriate Federal banking agency” in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813). (g) Total capital means the total of a bank's Tier 1 and Tier 2 capital under the risk-based capital guidelines provided by the bank's primary federal supervisor. For an insured branch of a foreign bank organized under the laws of a country that subscribes to the principles of the Basel Capital Accord, “total capital” means total Tier 1 and Tier 2 capital as calculated under the standards of that country. For an insured branch of a foreign bank organized under the laws of a country that does not subscribe to the principles of the Basel Capital Accord, “total capital” means total Tier 1 and Tier 2 capital as calculated under the provisions of the Accord. (h) U.S. depository institution means a bank, as defined in §206.2(a) of this part, other than an insured branch of a foreign bank. [Reg. F, 57 FR 60106, Dec. 18, 1992, as amended by Reg. F, 68 FR 53283, Sept. 10, 2003]
Title 12: Banks and Banking
PART 206—LIMITATIONS ON INTERBANK LIABILITIES (REGULATION F)
§ 206.2 Definitions.
