§ 628.23. Limit on inclusion of third-party capital in total (tier 1 and tier 2) capital.
129 words·~1 min read·
/us/cfr/t12/s§ 628.23·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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.