Covered depository institution means
a state member bank that meets all of the following criteria:
(1) Has less than $5 billion in total
consolidated assets as reported in its report of condition for the
second calendar quarter of the preceding year, except that, during
the calendar year 2021, a state member bank shall determine whether
it meets the requirement in paragraph (1) of this section by using
the lesser of its total consolidated assets as reported in its report
of condition as of December 31, 2019, and its total consolidated assets
as reported in its report of condition for the second calendar quarter
of 2020. The relief provided under this paragraph (1) of this section
does not apply to a state member bank if the Board determines that
permitting the state member bank to determine its assets in accordance
with that paragraph would not be commensurate with the risk profile
of the state member bank. When making this determination, the Board
will consider all relevant factors, including the extent of asset
growth of the state member bank since December 31, 2019; the causes
of such growth, including whether growth occurred as a result of mergers
or acquisitions; whether such growth is likely to be temporary or
permanent; whether the state member bank has become involved in any
additional activities since December 31, 2019; the asset size of any
parent companies; and the type of assets held by the state member
bank. In making a determination pursuant to this paragraph (1), the
Board will apply notice and response procedures in the same manner and
to the same extent as the notice and response procedures in 12 CFR
263.202.
(2) Has
no foreign offices, as defined in this section;
(3) Is not required to or has not elected
to use 12 CFR part 217, subpart E, to calculate its risk-based capital
requirements; and
(4) Is not a large
institution or highly complex institution, as such terms are defined
in 12 CFR 327.8, or treated as a large institution, as requested under
12 CFR 327.16(f).
Foreign country refers to
one or more foreign nations, and includes the overseas territories,
dependencies, and insular possessions of those nations and of the
United States.
Foreign office means:
(1) A branch or consolidated subsidiary
in a foreign country, unless the branch is located on a U.S. military
facility;
(2) An international banking
facility as such term is defined in 12 CFR 204.8;
(3) A majority-owned Edge Act or Agreement
subsidiary including both its U.S. and its foreign offices; and
(4) For an institution chartered or
headquartered in any U.S. state or the District of Columbia, a branch
or consolidated subsidiary located in a U.S. territory or possession.
Report of condition means the FFIEC 031, FFIEC
041, or FFIEC 051 versions of the Consolidated Report of Condition
and Income (Call Report) or the FFIEC 002 (Report of Assets and Liabilities
of U.S. Branches and Agencies of Foreign Banks), as applicable, and
as they may be amended or superseded from time to time in accordance
with the Paperwork Reduction Act of 1995, 44 U.S.C. chapter 35.
Total consolidated assets means total assets as reported
in a state member bank’s report of condition.
