For purposes of this subpart,
except as modified in this section or unless the context otherwise
requires, the terms used have the same meanings as set forth in section
38 and section 3 of the FDI Act.
(a) Advanced
approaches bank means a bank that is described in section 217.100(b)(1)
of Regulation Q (12 CFR 217.100(b)(1)).
(b) Bank means an insured depository institution as defined in section
3 of the FDI Act (12 U.S.C. 1813).
(c) Common
equity tier 1 capital means the amount of capital as defined in
section 217.2 of Regulation Q (12 CFR 217.2).
(d) Common equity tier 1 risk-based capital ratio means the
ratio of common equity tier 1 capital to total risk-weighted assets,
as calculated in accordance with section 217.10(b)(1) or section 217.10(c)(1)
of Regulation Q (12 CFR 217.10(b)(1), 12 CFR 217.10(c)(1)), as applicable.
(e) Control.
(1) Control has
the same meaning assigned to it in section 2 of the Bank Holding Company
Act (12 U.S.C. 1841), and the term controlled shall be construed consistently
with the term control.
(2) Exclusion for fiduciary ownership. No insured depository
institution or company controls another insured depository institution
or company by virtue of its ownership or control of shares in a fiduciary
capacity. Shares shall not be deemed to have been acquired in a fiduciary
capacity if the acquiring insured depository institution or company has
sole discretionary authority to exercise voting rights with respect
to the shares.
(3) Exclusion for debts previously contracted. No insured depository
institution or company controls another insured depository institution
or company by virtue of its ownership or control of shares acquired
in securing or collecting a debt previously contracted in good faith,
until two years after the date of acquisition. The two-year period
may be extended at the discretion of the appropriate Federal banking
agency for up to three one-year periods.
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(f) Controlling person means any person having control of
an insured depository institution and any company controlled by that
person.
(g) Global systemically important BHC has the same meaning as in section 217.2 of Regulation Q (12 CFR
217.2).
(h) Leverage ratio means the ratio
of tier 1 capital to average total consolidated assets, as calculated
in accordance with section 217.10 of Regulation Q (12 CFR 217.10).
(i) Management fee means any payment of money
or provision of any other thing of value to a company or individual
for the provision of management services or advice to the bank, or
related overhead expenses, including payments related to supervisory,
executive, managerial, or policy making functions, other than compensation
to an individual in the individual’s capacity as an officer or employee
of the bank.
(j) Supplementary leverage ratio means the ratio of tier 1 capital to total leverage exposure, as
calculated in accordance with section 217.10 of Regulation Q (12 CFR
217.10).
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(k) Tangible equity means the amount of tier
1 capital, plus the amount of outstanding perpetual preferred stock
(including related surplus) not included in tier 1 capital.
(l) Tier 1 capital means the amount of capital
as defined in section 217.20 of Regulation Q (12 CFR 217.20).
(m) Tier 1 risk-based capital ratio means
the ratio of tier 1 capital to total risk-weighted assets, as calculated
in accordance with section 217.10(b)(2) or section 217.10(c)(2) of
Regulation Q (12 CFR 217.10(b)(2), 12 CFR 217.10(c)(2)), as applicable.
(n) Total assets means quarterly average total
assets as reported in a bank’s Call Report, minus items deducted from
tier 1 capital. At its discretion the Federal Reserve may calculate
total assets using a bank’s period-end assets rather than quarterly
average assets.
(o) Total leverage exposure means the total leverage exposure, as calculated in accordance with
section 217.11 of Regulation Q (12 CFR 217.11).
(p) Total risk-based capital ratio means the ratio of total
capital to total risk-weighted assets, as calculated in accordance
with section 217.10(b)(3) or section 217.10(c)(3) of Regulation Q
(12 CFR 217.10(b)(3), 12 CFR 217.10(c)(3)), as applicable.
(q) Total risk-weighted assets means standardized
total risk-weighted assets, and for an advanced approaches bank also
includes advanced approaches total risk-weighted assets, as defined
in section 217.2 of Regulation Q (12 CFR 217.2).
