§ 3.100. Purpose, applicability, and principle of conservatism.
403 words·~2 min read·
/us/cfr/t12/s§ 3.100·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Purpose. This subpart E establishes:
(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
(2)Methodologies for such national banks or Federal savings associations to calculate their total risk-weighted assets.
(b)Applicability.
(1)This subpart applies to a national bank or Federal savings association that:
(i)Is a subsidiary of a global systemically important BHC, as identified pursuant to 12 CFR 217.402;
(ii)Is a Category II national bank or Federal savings association;
(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;
(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
(v)Elects to use this subpart to calculate its risk-based capital requirements.
(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).
(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:
(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;
(2)The national bank or Federal savings association appropriately manages the risk of each such exposure;
(3)The national bank or Federal savings association notifies the OCC in writing prior to applying this principle to each such exposure; and
(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. [78 FR 62157, 62273, Oct. 11, 2013, as amended at 80 FR 41415, July 15, 2015; 84 FR 59265, Nov. 1, 2019]
Connections50 cite this · traces to 1
Cited by 50 sections · top 40
register
- Rules and RegulationsNotice, request for comment; temporary approval of information collection
- NoticesApproval of information collection
- NoticesJoint notice and request for comment
- Rules and RegulationsFinal rule
- Proposed RulesNotice of proposed rulemaking with request for public comment
- NoticesNotice of proposed rulemaking
- NoticesNotice and request for comment
- Rules and RegulationsFinal rule
- NoticesNotice of proposed rulemaking and request for comment
- Rules and RegulationsNotice of proposed rulemaking with request for public comment
- Proposed RulesJoint notice of proposed rulemaking (NPR)
- Rules and RegulationsFinal rule
- Rules and RegulationsNotice of proposed rulemaking
- NoticesJoint notice and request for comment
- Rules and RegulationsFinal rule
- UnknownFinal rule
- Proposed RulesProposed rule
- Proposed RulesFinal rules and guidelines
- Rules and RegulationsNotice and request for comment
- Proposed RulesNotice of proposed rulemaking and request for comment
- NoticesJoint notice and request for comment
- Rules and RegulationsNotice of proposed rulemaking with request for public comment
- NoticesJoint notice and request for comment
- NoticesJoint notice and request for comment
- UnknownInterim final rule and request for comments
- Rules and RegulationsInterim final rule, request for comment
- UnknownFinal rule
- Rules and RegulationsInterim final rule; request for comment
- NoticesInterim final rule; request for comment
- NoticesFinal rule
- NoticesNotice and request for comment
- NoticesJoint notice and request for comment
- NoticesJoint notice and request for comment
- NoticesJoint notice and request for comment
- Rules and RegulationsNotice of proposed rulemaking
- Rules and RegulationsInterim final rule and request for comments
- Rules and RegulationsFinal rule
- Proposed RulesFinal rule
- NoticesJoint notice and request for comment
- NoticesJoint notice and request for comment
Traces to 1 document
2 references not yet in our index
- 12 CFR 217
- 12 CFR 324
Citation graph
cites case law
§ 3.100
Purpose, applicability, and principle of conservatism.
Fed. Reg.×50
Cite12 CFR 217
Cite12 CFR 324
Cites 3Cited by 50 across 1 source