For the purposes of
this part:
Affiliated depository institution means with
respect to a Board-regulated institution that is a depository institution,
another depository institution that is a consolidated subsidiary of
a bank holding company or savings and loan holding company of which
the Board-regulated institution is also a consolidated subsidiary.
Asset exchange means a transaction in which, as of the calculation
date, the counterparties have previously exchanged non-cash assets,
and have each agreed to return such assets to each other at a future
date. Asset exchanges do not include secured funding and secured lending
transactions.
Average weighted short-term wholesale funding means the average of the weighted short-term wholesale funding for
each of the four most recent calendar quarters as reported quarterly
on the FR Y-15 or, if the Board-regulated institution has not filed
the FR Y-15 for each of the four most recent calendar quarters, for
the most recent quarter or averaged over the most recent quarters,
as applicable.
Bank holding company is defined in section
2 of the Bank Holding Company Act of 1956, as amended (12 U.S.C. 1841 et seq.).
Board means the Board of Governors of
the Federal Reserve System.
Board-regulated institution means a state member bank, covered depository institution holding
company, U.S. intermediate holding company, or covered nonbank company.
Brokered deposit means any deposit held at the Board-regulated
institution that is obtained, directly or indirectly, from or through
the mediation or assistance of a deposit broker as that term is defined
in section 29 of the Federal Deposit Insurance Act (12 U.S.C. 1831f(g))
and the Federal Deposit Insurance Corporation’s regulations.
Brokered reciprocal deposit means a brokered deposit that
a Board-regulated institution receives through a deposit placement
network on a reciprocal basis, such that:
(1) For any deposit received, the Board-regulated
institution (as agent for the depositors) places the same amount with
other depository institutions through the network; and
(2) Each member of the network sets the
interest rate to be paid on the entire amount of funds it places with
other network members.
Calculation date means,
for subparts B through J of this part, any date on which a Board-regulated
institution calculates its liquidity coverage ratio under section
249.10, and for subparts K through N of this part, any date on which
a Board-regulated institution calculates its net stable funding ratio
under section 249.100.
Call Report means the Consolidated
Reports of Condition and Income.
Carrying value means,
with respect to an asset, NSFR regulatory capital element, or NSFR
liability, the value on the balance sheet of the Board-regulated institution,
each as determined in accordance with GAAP.
Category II
Board-regulated institution means:
(1) A covered depository institution holding
company that is identified as a Category II banking organization pursuant
to 12 CFR 252.5 or 12 CFR 238.10;
(2) A U.S. intermediate holding company that is identified as a Category
II banking organization pursuant to 12 CFR 252.5;
(3) (i) A state member bank
that:
(A) Is a consolidated
subsidiary of:
(1) A company described in paragraph
(1) or (2) of this definition; or
(2) A depository institution that meets the criteria in paragraph
(4)(ii)(A) or (B) of this definition; and
(B) That has total consolidated assets, calculated
based on the average of the state member bank’s total consolidated
assets for the four most recent calendar quarters as reported on the
Call Report, equal to $10 billion or more.
(ii) If the state member bank has not
filed the Call Report for each of the four most recent calendar quarters,
total consolidated assets is calculated based on its total consolidated
assets, as reported on the Call Report, for the most recent quarter
or the average of the most recent quarters, as applicable. After meeting
the criteria under this paragraph (3), a state member bank continues
to be a Category II Board-regulated institution until the state member
bank has less than $10 billion in total consolidated assets, as reported
on the Call Report, for each of the four most recent calendar quarters,
or the state member bank is no longer a consolidated subsidiary of
a company described in paragraph (3)(i)(A)(1) or (2)
of this definition; or
(4) A state member bank that:
(i) Is not a subsidiary of a depository
institution holding company; and
(ii) (A) Has total consolidated assets,
calculated based on the average of the depository institution’s total
consolidated assets for the four most recent calendar quarters as
reported on the Call Report, equal to $700 billion or more. If the
depository institution has not filed the Call Report for each of the
four most recent calendar quarters, total consolidated assets is calculated
based on its total consolidated assets, as reported on the Call Report,
for the most recent quarter or the average of the most recent quarters,
as applicable; or
(B) Has:
(1)
Total consolidated assets, calculated based on the average of the
depository institution’s total consolidated assets for the four most
recent calendar quarters as reported on the Call Report, of $100 billion
or more but less than $700 billion. If the depository institution
has not filed the Call Report for each of the four most recent calendar
quarters, total consolidated assets means its total consolidated assets,
as reported on the Call Report, for the most recent quarter or the
average of the most recent quarters, as applicable; and
(2) Cross-jurisdictional activity,
calculated based on the average of its cross-jurisdictional activity
for the four most recent calendar quarters, of $75 billion or more.
Cross-jurisdictional activity is the sum of cross-jurisdictional claims
and cross-jurisdictional liabilities, calculated in accordance with
the instructions to the FR Y-15 or equivalent reporting form.
(iii) After meeting
the criteria in paragraphs (4)(i) and (ii) of this definition, a state
member bank continues to be a Category II Board-regulated institution
until the state member bank:
(A)(1) Has less than $700 billion in total consolidated assets,
as reported on the Call Report, for each of the four most recent calendar
quarters; and
(2) Has less
than $75 billion in cross-jurisdictional activity for each of the
four most recent calendar quarters. Cross-jurisdictional activity
is the sum of cross-jurisdictional claims and cross-jurisdictional
liabilities, calculated in accordance with the instructions to the
FR Y-15 or equivalent reporting form;
(B) Has less than $100 billion in total consolidated
assets, as reported on the Call Report, for each of the four most
recent calendar quarters; or
(C) Is
a GSIB depository institution.
Category III Board-regulated institution means:
(1) A covered depository institution
holding company that is identified as a Category III banking organization
pursuant to 12 CFR 252.5 or 12 CFR 238.10, as applicable;
(2) A U.S. intermediate holding company
that is identified as a Category III banking organization pursuant
to 12 CFR 252.5;
(3) (i) A state member bank that is:
(A) A consolidated subsidiary of:
(1)
A company described in paragraph (1) or (2) of this definition; or
(2) A depository institution
that meets the criteria in paragraph (4)(ii)(A) or (B) of this definition;
and
(B) Has total consolidated
assets, calculated based on the average of the state member bank’s
total consolidated assets for the four most recent calendar quarters
as reported on the Call Report, equal to $10 billion or more.
(ii) If the state member bank has
not filed the Call Report for each of the four most recent calendar
quarters, total consolidated assets means its total consolidated assets,
as reported on the Call Report, for the most recent quarter or the average
of the most recent quarters, as applicable. After meeting the criteria
under this paragraph (3), a state member bank continues to be a Category
III Board-regulated institution until the state member bank has less
than $10 billion in total consolidated assets, as reported on the
Call Report, for each of the four most recent calendar quarters, or
the state member bank is no longer a consolidated subsidiary of a
company described in paragraph (3)(i)(A)(1) or (2) of
this definition; or
(4) A state member bank that:
(i) Is not a depository institution
holding company; and
(ii) (A) Has total consolidated assets, calculated based on the average
of the depository institution’s total consolidated assets in the four
most recent quarters as reported on the most recent Call Report, equal
to $250 billion or more. If the depository institution has not filed
the Call Report for each of the four most recent calendar quarters,
total consolidated assets means its total consolidated assets, as
reported on the Call Report, for the most recent quarter or the average
of the most recent quarters, as applicable; or
(B) Has:
(1)
Total consolidated assets, calculated based on the average of the
depository institution’s total consolidated assets in the four most
recent calendar quarters as reported on the most recent Call Report,
of $100 billion or more but less than $250 billion. If the depository
institution has not filed the Call Report for each of the four most
recent calendar quarters, total consolidated assets means its total
consolidated assets, as reported on the Call Report, for the most
recent quarter or the average of the most recent quarters, as applicable;
and
(2) At least one of the
following in paragraphs (4)(ii)(B)(2)(i) through (iii) of this definition, each measured as the average of the
four most recent calendar quarters, or if the depository institution
has not filed the FR Y-9LP or equivalent reporting form, Call Report,
or FR Y-15 or equivalent reporting form, as applicable, for each of
the four most recent calendar quarters, for the most recent quarter
or the average of the most recent quarters, as applicable:
(i)
Total nonbank assets, calculated in accordance with instructions to
the FR Y-9LP or equivalent reporting form, equal to $75 billion or
more;
(ii) Off-balance sheet
exposure, calculated in accordance with the instructions to the FR
Y-15 or equivalent reporting form, minus the total consolidated assets
of the depository institution, as reported on the Call Report, equal
to $75 billion or more; or
(iii) Weighted short-term wholesale funding, calculated in accordance
with the instructions to the FR Y-15 or equivalent reporting form,
equal to $75 billion or more.
(iii) After meeting the criteria
in paragraphs (4)(i) and (ii) of this definition, a state member bank
continues to be a Category III Board-regulated institution until the
state member bank:
(A) (1) Has less than $250 billion in total consolidated assets,
as reported on the Call Report, for each of the four most recent calendar
quarters;
(2) Has less than
$75 billion in total nonbank assets, calculated in accordance with
the instructions to the FR Y-9LP or equivalent reporting form, for
each of the four most recent calendar quarters;
(3) Has less than $75 billion in off-balance
sheet exposure for each of the four most recent calendar quarters.
Off-balance sheet exposure is a state member bank’s total exposure,
calculated in accordance with the instructions to the FR Y-15 or equivalent
reporting form, minus the total consolidated assets of the state member bank,
as reported on the Call Report; and
(4) Has less than $75 billion in weighted short-term wholesale
funding, calculated in accordance with the instructions to the FR
Y-15 or equivalent reporting form, for each of the four most recent
calendar quarters;
(B)
Has less than $100 billion in total consolidated assets, as reported
on the Call Report, for each of the four most recent calendar quarters;
(C) Is a Category II Board-regulated
institution; or
(D) Is a GSIB depository
institution.
Category
IV Board-regulated institution means:
(1) A covered depository institution holding
company that is identified as a Category IV banking organization pursuant
to 12 CFR 252.5 or 12 CFR 238.10, as applicable; or
(2) A U.S. intermediate holding company
that is identified as a Category IV banking organization pursuant
to 12 CFR 252.5.
Client pool security means
a security that is owned by a customer of the Board-regulated institution
that is not an asset of the Board-regulated institution, regardless
of a Board-regulated institution’s hypothecation rights with respect
to the security.
Collateralized deposit means:
(1) A deposit of a public sector entity
held at the Board-regulated institution that is required to be secured
under applicable law by a lien on assets owned by the Board-regulated
institution and that gives the depositor, as holder of the lien, priority
over the assets in the event the Board-regulated institution enters
into receivership, bankruptcy, insolvency, liquidation, resolution,
or similar proceeding;
(2) A deposit
of a fiduciary account awaiting investment or distribution held at
the Board-regulated institution for which the Board-regulated institution
is a fiduciary and is required under 12 CFR 9.10(b) (national banks),
12 CFR 150.300 through 150.320 (federal savings associations), or
applicable state law (state member and nonmember banks, and state
savings associations) to set aside assets owned by the Board-regulated
institution as security, which gives the depositor priority over the
assets in the event the Board-regulated institution enters into receivership,
bankruptcy, insolvency, liquidation, resolution, or similar proceeding;
or
(3) A deposit of a fiduciary
account awaiting investment or distribution held at the Board-regulated
institution for which the Board-regulated institution’s affiliated
insured depository institution is a fiduciary and where the Board-regulated
institution under 12 CFR 9.10(c) (national banks), 12 CFR 150.310
(federal savings associations), or applicable state law (state member
and nonmember banks, state savings associations) has set aside assets
owned by the Board-regulated institution as security, which gives
the depositor priority over the assets in the event the Board-regulated
institution enters into receivership, bankruptcy, insolvency, liquidation,
resolution, or similar proceeding.
Committed means, with respect to a credit or liquidity facility, that under
the terms of the facility, it is not unconditionally cancelable.
Company means a corporation, partnership, limited liability
company, depository institution, business trust, special purpose entity,
association, or similar organization.
Consolidated subsidiary means a company that is consolidated on the balance sheet of a Board-regulated
institution or other company under GAAP.
Controlled subsidiary means, with respect to a company or a Board-regulated institution,
a consolidated subsidiary or a company that otherwise meets the definition
of “subsidiary” in section 2(d) of the Bank Holding Company Act of
1956 (12 U.S.C. 1841(d)).
Covered depository institution
holding company means a top-tier bank holding company or savings
and loan holding company domiciled in the United States other than:
(1) A top-tier savings and
loan holding company that is:
(i) A grandfathered unitary savings and loan holding company as defined
in section 10(c)(9)(A) of the Home Owners’ Loan Act (12 U.S.C. 1461 et seq.); and
(ii) As of
June 30 of the previous calendar year, derived 50 percent or more
of its total consolidated assets or 50 percent of its total revenues
on an enterprise-wide basis (as calculated under GAAP) from activities
that are not financial in nature under section 4(k) of the Bank Holding
Company Act (12 U.S.C. 1843(k));
(2) A top-tier depository institution holding
company that is an insurance underwriting company;
(3) (i) A top-tier depository
institution holding company that, as of June 30 of the previous calendar
year, held 25 percent or more of its total consolidated assets in
subsidiaries that are insurance underwriting companies (other than
assets associated with insurance for credit risk); and
(ii) For purposes of paragraph (3)(i)
of this definition, the company must calculate its total consolidated
assets in accordance with GAAP, or if the company does not calculate
its total consolidated assets under GAAP for any regulatory purpose
(including compliance with applicable securities laws), the company
may estimate its total consolidated assets, subject to review and
adjustment by the Board of Governors of the Federal Reserve System;
or
(4) A U.S. intermediate
holding company.
Covered Federal Reserve facility
funding means a non-recourse loan that is extended as part of
the Money Market Mutual Fund Liquidity Facility or Paycheck Protection
Program Liquidity Facility authorized by the Board pursuant to section
13(3) of the Federal Reserve Act.
1 Covered nonbank company means a designated
company that the Board of Governors of the Federal Reserve System
has required by separate rule or order to comply with the requirements
of 12 CFR part 249.
Credit facility means a legally
binding agreement to extend funds if requested at a future date, including
a general working capital facility such as a revolving credit facility
for general corporate or working capital purposes. A credit facility
does not include a legally binding written agreement to extend funds
at a future date to a counterparty that is made for the purpose of
refinancing the debt of the counterparty when it is unable to obtain
a primary or anticipated source of funding. See liquidity facility.
Customer short position means a legally binding
written agreement pursuant to which the customer must deliver to the
Board-regulated institution a non-cash asset that the customer has
already sold.
Deposit means “deposit” as defined in
section 3(l) of the Federal Deposit Insurance Act (12 U.S.C.
1813(l)) or an equivalent liability of the Board-regulated
institution in a jurisdiction outside of the United States.
Depository institution is defined in section 3(c) of the Federal
Deposit Insurance Act (12 U.S.C. 1813(c)).
Depository institution
holding company means a bank holding company or savings and loan
holding company.
Deposit insurance means deposit insurance
provided by the Federal Deposit Insurance Corporation under the Federal
Deposit Insurance Act (12 U.S.C. 1811 et seq.).
Derivative
transaction means a financial contract whose value is derived
from the values of one or more underlying assets, reference rates,
or indices of asset values or reference rates. Derivative contracts
include interest rate derivative contracts, exchange rate derivative
contracts, equity derivative contracts, commodity derivative contracts,
credit derivative contracts, forward contracts, and any other instrument
that poses similar counterparty credit risks. Derivative contracts
also include unsettled securities, commodities, and foreign currency
exchange transactions with a contractual settlement or delivery lag
that is longer than the lesser of the market standard for the particular
instrument or five business days. A derivative does not include any
identified banking product, as that term is defined in section 402(b)
of the Legal Certainty for Bank Products Act of 2000 (7 U.S.C. 27(b)),
that is subject to section 403(a) of that Act (7 U.S.C. 27a(a)).
Designated company means a company that the Financial
Stability Oversight Council has determined under section 113 of the
Dodd-Frank Act (12 U.S.C. 5323) shall be supervised by the Board of
Governors of the Federal Reserve System and for which such determination
is still in effect.
Dodd-Frank Act means the Dodd-Frank
Wall Street Reform and Consumer Protection Act, Public Law 111-203,
124 Stat. 1376 (2010).
Eligible HQLA means a high-quality
liquid asset that meets the requirements set forth in section 249.22.
Encumbered means, with respect to an asset, that the asset:
(1) Is subject to legal,
regulatory, contractual, or other restriction on the ability of the
Board-regulated institution to monetize the asset; or
(2) Is pledged, explicitly or implicitly,
to secure or to provide credit enhancement to any transaction, not
including when the asset is pledged to a central bank or a U.S. government-sponsored
enterprise where:
(i) Potential credit secured by the asset is not currently extended
to the Board-regulated institution or its consolidated subsidiaries;
and
(ii) The pledged asset is
not required to support access to the payment services of a central
bank.
Fair value means fair value
as determined under GAAP.
Financial sector entity means
an investment adviser, investment company, pension fund, non-regulated
fund, regulated financial company, or identified company.
Foreign withdrawable reserves means a Board-regulated institution’s
balances held by or on behalf of the Board-regulated institution at
a foreign central bank that are not subject to restrictions on the
Board-regulated institution’s ability to use the reserves.
FR Y-9LP means the Parent Company Only Financial Statements
for Large Holding Companies.
FR Y-15 means the Systemic
Risk Report.
GAAP means generally accepted accounting
principles as used in the United States.
Global systemically
important BHC means a bank holding company identified as a global
systemically important BHC pursuant to 12 CFR 217.402.
GSIB
depository institution means a depository institution that is
a consolidated subsidiary of a global systemically important BHC and
has total consolidated assets equal to $10 billion or more, calculated
based on the average of the depository institution’s total consolidated
assets for the four most recent calendar quarters as reported on the
Call Report. If the depository institution has not filed the Call
Report for each of the four most recent calendar quarters, total consolidated
assets means its total consolidated assets, as reported on the Call
Report, for the most recent calendar quarter or the average of the
most recent calendar quarters, as applicable. After meeting the criteria
under this definition, a depository institution continues to be a
GSIB depository institution until the depository institution has less
than $10 billion in total consolidated assets, as reported on the
Call Report, for each of the four most recent calendar quarters, or
the depository institution is no longer a consolidated subsidiary
of a global systemically important BHC.
High-quality liquid
asset (HQLA) means an asset that is a level 1 liquid asset, level
2A liquid asset, or level 2B liquid asset, in accordance with the
criteria set forth in section 249.20.
HQLA amount means
the HQLA amount as calculated under section 249.21.
Identified
company means any company that the Board has determined should
be treated for the purposes of this part the same as a regulated financial
company, investment company, non-regulated fund, pension fund, or
investment adviser, based on activities similar in scope, nature,
or operations to those entities.
Individual means
a natural person, and does not include a sole proprietorship.
Investment adviser means a company registered with the SEC
as an investment adviser under the Investment Advisers Act of 1940
(15 U.S.C. 80b-1 et seq.) or foreign equivalents of such company.
Investment company means a person or company registered
with the SEC under the Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.) or foreign equivalents of such persons or companies.
Liquid and readily-marketable means, with respect to a
security, that the security is traded in an active secondary market
with:
(1) More than two
committed market makers;
(2) A large
number of non-market maker participants on both the buying and selling
sides of transactions;
(3) Timely
and observable market prices; and
(4) A high trading volume.
Liquidity facility means a legally binding written agreement to extend funds at a future
date to a counterparty that is made for the purpose of refinancing
the debt of the counterparty when it is unable to obtain a primary
or anticipated source of funding. A liquidity facility includes an
agreement to provide liquidity support to asset-backed commercial
paper by lending to, or purchasing assets from, any structure, program
or conduit in the event that funds are required to repay maturing
asset-backed commercial paper. Liquidity facilities exclude facilities
that are established solely for the purpose of general working capital,
such as revolving credit facilities for general corporate or working
capital purposes. If a facility has characteristics of both credit
and liquidity facilities, the facility must be classified as a liquidity
facility. See credit facility.
Multilateral development
bank means the International Bank for Reconstruction and Development,
the Multilateral Investment Guarantee Agency, the International Finance
Corporation, the Inter-American Development Bank, the Asian Development
Bank, the African Development Bank, the European Bank for Reconstruction
and Development, the European Investment Bank, the European Investment
Fund, the Nordic Investment Bank, the Caribbean Development Bank,
the Islamic Development Bank, the Council of Europe Development Bank,
and any other entity that provides financing for national or regional
development in which the U.S. government is a shareholder or contributing
member or which the Board determines poses comparable risk.
Municipal obligation means an obligation of:
(1) A state or any political subdivision
thereof; or
(2) Any agency or instrumentality
of a state or any political subdivision thereof.
Non-regulated fund means any hedge fund or private equity
fund whose investment adviser is required to file SEC Form PF (Reporting
Form for Investment Advisers to Private Funds and Certain Commodity
Pool Operators and Commodity Trading Advisors), other than a small
business investment company as defined in section 102 of the Small
Business Investment Act of 1958 (15 U.S.C. 661 et seq.).
Nonperforming exposure means an exposure that is past
due by more than 90 days or nonaccrual.
NSFR liability means any liability or equity reported on a Board-regulated institution’s
balance sheet that is not an NSFR regulatory capital element.
NSFR regulatory capital element means any capital element
included in a Board-regulated institution’s common equity tier 1 capital,
additional tier 1 capital, and tier 2 capital, in each case as defined
in section 217.20 of Regulation Q (12 CFR part 217), prior to application
of capital adjustments or deductions as set forth in section 217.22
of Regulation Q (12 CFR part 217), excluding any debt or equity instrument
that does not meet the criteria for additional tier 1 or tier 2 capital
instruments in section 217.22 of Regulation Q (12 CFR part 217) and
is being phased out of tier 1 capital or tier 2 capital pursuant to
subpart G of Regulation Q (12 CFR part 217).
Operational
deposit means short-term unsecured wholesale funding that is a
deposit, unsecured wholesale lending that is a deposit, or a collateralized
deposit, in each case that meets the requirements of section 249.4(b) with respect
to that deposit and is necessary for the provision of operational
services as an independent third-party intermediary, agent, or administrator
to the wholesale customer or counterparty providing the deposit.
Operational services means the following services, provided
they are performed as part of cash management, clearing, or custody
services:
(1) Payment remittance;
(2) Administration of payments and
cash flows related to the safekeeping of investment assets, not including
the purchase or sale of assets;
(3) Payroll administration and control over the disbursement of funds;
(4) Transmission, reconciliation,
and confirmation of payment orders;
(5) Daylight overdraft;
(6) Determination
of intra-day and final settlement positions;
(7) Settlement of securities transactions;
(8) Transfer of capital distributions
and recurring contractual payments;
(9) Customer subscriptions and redemptions;
(10) Scheduled distribution of customer
funds;
(11) Escrow, funds transfer,
stock transfer, and agency services, including payment and settlement
services, payment of fees, taxes, and other expenses; and
(12) Collection and aggregation of funds.
Pension fund means an employee benefit plan
as defined in paragraphs (3) and (32) of section 3 of the Employee
Retirement Income and Security Act of 1974 (29 U.S.C. 1001 et seq.), a “governmental plan” (as defined in 29 U.S.C. 1002(32)) that
complies with the tax deferral qualification requirements provided
in the Internal Revenue Code, or any similar employee benefit plan
established under the laws of a foreign jurisdiction.
Public
sector entity means a state, local authority, or other governmental
subdivision below the U.S. sovereign entity level.
Publicly
traded means, with respect to an equity security, that the equity
security is traded on:
(1) Any exchange registered with the SEC as a national securities
exchange under section 6 of the Securities Exchange Act of 1934 (15
U.S.C. 78f); or
(2) Any non-U.S.-based
securities exchange that:
(i) Is registered with, or approved
by, a national securities regulatory authority; and
(ii) Provides a liquid, two-way market
for the security in question.
QMNA
netting set means a group of derivative transactions with a single
counterparty that is subject to a qualifying master netting agreement
and is netted under the qualifying master netting agreement.
Qualifying master netting agreement means a written, legally
enforceable agreement provided that:
(1) The agreement creates a single legal
obligation for all individual transactions covered by the agreement
upon an event of default following any stay permitted by paragraph
(2) of this definition, including upon an event of receivership, conservatorship,
insolvency, liquidation, or similar proceeding, of the counterparty;
(2) The agreement provides the Board-regulated
institution the right to accelerate, terminate, and close-out on a
net basis all transactions under the agreement and to liquidate or
set-off collateral promptly upon an event of default, including upon
an event of receivership, conservatorship, insolvency, liquidation,
or similar proceeding, of the counterparty, provided that, in any
such case:
(i) Any
exercise of rights under the agreement will not be stayed or avoided
under applicable law in the relevant jurisdictions, other than:
(A) In receivership, conservatorship,
or resolution under the Federal Deposit Insurance Act, Title II of
the Dodd-Frank Act, or under any similar insolvency law applicable
to GSEs, or laws of foreign jurisdictions that are substantially similar
2 to the U.S. laws ref
erenced in this paragraph
(2)(i)(A)
in order to facilitate the orderly resolution of the defaulting counterparty;
(B) Where the agreement is subject by
its terms to, or incorporates, any of the laws referenced in paragraph
(2)(i)(A) of this definition; and
(ii) The agreement may limit the right
to accelerate, terminate, and close-out on a net basis all transactions
under the agreement and to liquidate or set-off collateral promptly
upon an event of default of the counterparty to the extent necessary
for the counterparty to comply with the requirements of subpart I
of the Board’s Regulation YY (part 252 of this chapter), part 47 of
this title, or part 382 of this title, as applicable.
Regulated financial company means:
(1) A depository institution holding
company or designated company;
(2)
A company included in the organization chart of a depository institution
holding company on the Form FR Y-6, as listed in the hierarchy report
of the depository institution holding company produced by the National
Information Center (NIC) website,
3 provided that the top-tier depository institution holding
company is subject to a minimum liquidity standard under this part;
(3) A depository institution; foreign
bank; credit union; industrial loan company, industrial bank, or other
similar institution described in section 2 of the Bank Holding Company
Act of 1956, as amended (12 U.S.C. 1841 et seq.); national
bank, state member bank, or state non-member bank that is not a depository
institution;
(4) An insurance company;
(5) A securities holding company as
defined in section 618 of the Dodd-Frank Act (12 U.S.C. 1850a); broker
or dealer registered with the SEC under section 15 of the Securities
Exchange Act (15 U.S.C. 78o); futures commission merchant as defined
in section 1a of the Commodity Exchange Act of 1936 (7 U.S.C. 1a);
swap dealer as defined in section 1a of the Commodity Exchange Act
(7 U.S.C. 1a); or security-based swap dealer as defined in section
3 of the Securities Exchange Act (15 U.S.C. 78c);
(6) A designated financial market utility,
as defined in section 803 of the Dodd-Frank Act (12 U.S.C. 5462);
(7) A U.S. intermediate holding company;
and
(8) Any company not domiciled
in the United States (or a political subdivision thereof) that is
supervised and regulated in a manner similar to entities described
in paragraphs (1) through (7) of this definition (e.g., a foreign
banking organization, foreign insurance company, foreign securities
broker or dealer or foreign financial market utility).
(9) A regulated financial company does
not include:
(i)
U.S. government-sponsored enterprises;
(ii) Small business investment companies,
as defined in section 102 of the Small Business Investment Act of
1958 (15 U.S.C. 661 et seq.);
(iii) Entities designated as Community
Development Financial Institutions (CDFIs) under 12 U.S.C. 4701 et seq. and 12 CFR part 1805; or
(iv) Central banks, the Bank for International
Settlements, the International Monetary Fund, or multilateral development
banks.
Reserve Bank balances means:
(1) Balances held in a master
account of the Board-regulated institution at a Federal Reserve Bank,
less any balances that are attributable to any respondent of the Board-regulated
institution if the Board-regulated institution is a correspondent
for a pass-through account as defined in section 204.2(l) of
Regulation D (12 CFR 204.2(l));
(2) Balances held in a master account of a correspondent of the Board-regulated
institution that are attributable to the Board-regulated institution
if the Board-regulated institution is a respondent for a pass-through
account as defined in section 204.2(l) of Regulation D;
(3) “Excess balances” of the Board-regulated
institution as defined in section 204.2(z) of Regulation D (12 CFR
204.2(z)) that are maintained in an “excess balance account” as defined
in section 204.2(aa) of Regulation D (12 CFR 204.2(aa)) if the Board-regulated
institution is an excess balance account participant; or
(4) “Term deposits” of the Board-regulated
institution as defined in section 204.2(dd) of Regulation D (12 CFR
204.2(dd)) if such term deposits are offered and maintained pursuant
to terms and conditions that:
(i) Explicitly and contractually permit
such term deposits to be withdrawn upon demand prior to the expiration
of the term, or that
(ii) Permit
such term deposits to be pledged as collateral for term or automatically-renewing
overnight advances from the Federal Reserve Bank.
Retail customer or counterparty means a customer
or counterparty that is:
(1) An individual;
(2) A business
customer, but solely if and to the extent that:
(i) The Board-regulated institution
manages its transactions with the business customer, including deposits,
unsecured funding, and credit facility and liquidity facility transactions,
in the same way it manages its transactions with individuals;
(ii) Transactions with the business
customer have liquidity risk characteristics that are similar to comparable
transactions with individuals; and
(iii) The total aggregate funding raised from the business customer
is less than $1.5 million; or
(3) A living or testamentary trust that:
(i) Is solely for the
benefit of natural persons;
(ii)
Does not have a corporate trustee; and
(iii) Terminates within 21 years and
10 months after the death of grantors or beneficiaries of the trust
living on the effective date of the trust or within 25 years, if applicable
under state law.
Retail deposit means a demand or term deposit that is placed with the Board-regulated
institution by a retail customer or counter-party, other than a brokered
deposit.
Retail mortgage means a mortgage that is primarily
secured by a first or subsequent lien on one-to-four family residential
property.
Savings and loan holding company means a savings
and loan holding company as defined in section 10 of the Home Owners’
Loan Act (12 U.S.C. 1467a).
SEC means the Securities
and Exchange Commission.
Secured funding transaction means any funding transaction that is subject to a legally binding
agreement that gives rise to a cash obligation of the Board-regulated
institution to a wholesale customer or counterparty that is secured
under applicable law by a lien on securities or loans provided by
the Board-regulated institution, which gives the wholesale customer
or counterparty, as holder of the lien, priority over the securities
or loans in the event the Board-regulated institution enters into
receivership, bankruptcy, insolvency, liquidation, resolution, or
similar proceeding. Secured funding transactions include repurchase
transactions, securities lending transactions, other secured loans,
and borrowings from a Federal Reserve Bank. Secured funding transactions
do not include securities.
Secured lending transaction means any lending transaction that is subject to a legally binding
agreement that gives rise to a cash obligation of a wholesale customer
or counterparty to the Board-regulated institution that is secured
under applicable law by a lien on securities or loans provided by
the wholesale customer or counterparty, which gives the Board-regulated
institution, as holder of the lien, priority over the securities or
loans in the event the counterparty enters into receivership, bankruptcy,
insolvency, liquidation, resolution, or similar proceeding. Secured
lending transactions include reverse repurchase transactions and securities
borrowing transactions. Secured lending transactions do not include
securities.
Securities Exchange Act means the Securities
Exchange Act of 1934 (15 U.S.C. 78a et seq.).
Sovereign
entity means a central government (including the U.S. government)
or an agency, department, ministry, or central bank of a central government.
Special purpose entity means a company organized for a specific
purpose, the activities of which are significantly limited to those
appropriate to accomplish a specific purpose, and the structure of
which is intended to isolate the credit risk of the special purpose
entity.
Stable retail deposit means a retail deposit
that is entirely covered by deposit insurance and:
(1) Is held by the depositor in a transactional
account; or
(2) The depositor that
holds the account has another established relationship with the Board-regulated
institution such as another deposit account, a loan, bill payment
services, or any similar service or product provided to the depositor
that the Board-regulated institution demonstrates to the satisfaction
of the Board would make deposit withdrawal highly unlikely during
a liquidity stress event.
State means any
state, commonwealth, territory, or possession of the United States,
the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth
of the Northern Mariana Islands, American Samoa, Guam, or the United
States Virgin Islands.
State member bank means a state
bank that is a member of the Federal Reserve System.
Structured
security means a security whose cash flow characteristics depend
upon one or more indices or that has embedded forwards, options, or
other derivatives or a security where an investor’s investment return
and the issuer’s payment obligations are contingent on, or highly
sensitive to, changes in the value of underlying assets, indices,
interest rates, or cash flows.
Structured transaction means a secured transaction in which repayment of obligations and
other exposures to the transaction is largely derived, directly or
indirectly, from the cash flow generated by the pool of assets that
secures the obligations and other exposures to the transaction.
Sweep deposit means a deposit held at the Board-regulated
institution by a customer or counterparty through a contractual feature
that automatically transfers to the Board-regulated institution from
another regulated financial company at the close of each business
day amounts identified under the agreement governing the account from
which the amount is being transferred.
Two-way market means a market where there are independent bona fide offers
to buy and sell so that a price reasonably related to the last sales
price or current bona fide competitive bid and offer quotations
can be determined within one day and settled at that price within
a relatively short time frame conforming to trade custom.
Unconditionally cancelable means, with respect to a credit or
liquidity facility, that a Board-regulated institution may, at any
time, with or without cause, refuse to extend credit under the facility
(to the extent permitted under applicable law).
Unsecured
wholesale funding means a liability or general obligation of the
Board-regulated institution to a wholesale customer or counterparty
that is not a secured funding transaction. Unsecured wholesale funding
includes wholesale deposits. Unsecured wholesale funding does not
include asset exchanges.
Unsecured wholesale lending means a liability or general obligation of a wholesale customer
or counterparty to the Board-regulated institution that is not a secured
lending transaction or a security. Unsecured wholesale lending does
not include asset exchanges.
U.S. government-sponsored enterprise means an entity established or chartered by the Federal government
to serve public purposes specified by the United States Congress,
but whose debt obligations are not explicitly guaranteed by the full
faith and credit of the United States government.
U.S. intermediate
holding company means a top-tier company that is required to be
established pursuant to 12 CFR 252.153.
Unsecured wholesale
funding means a liability or general obligation of the Board-regulated
institution to a wholesale customer or counterparty that is not secured
under applicable law by a lien on assets owned by the Board-regulated
institution, including a wholesale deposit.
Wholesale customer or
counterparty means a customer or counterparty that is not a retail
customer or counterparty. Wholesale deposit means a demand or term
deposit that is provided by a wholesale customer or counter-party.
