(a) (1) Applicability. For purposes of section 217.20, a Board-regulated
institution that is not an advanced approaches Board-regulated institution
is subject to the minority interest limitations in this paragraph
(a) if a consolidated subsidiary of the Board-regulated institution
has issued regulatory capital that is not owned by the Board-regulated
institution.
(2) Common equity tier 1 minority interest includable
in the common equity tier 1 capital of the Board-regulated institution. The amount of common equity tier 1 minority interest that a Board-regulated
institution may include in common equity tier 1 capital must be no
greater than 10 percent of the sum of all common equity tier 1 capital
elements of the Board-regulated institution (not including the common
equity tier 1 minority interest itself), less any common equity tier
1 capital regulatory adjustments and deductions in accordance with
section 217.22 (a) and (b).
(3) Tier 1 minority
interest includable in the tier 1 capital of the Board-regulated institution. The amount of tier 1 minority interest that a Board-regulated institution
may include in tier 1 capital must be no greater than 10 percent of
the sum of all tier 1 capital elements of the Board-regulated institution
(not including the tier 1 minority interest itself), less any tier
1 capital regulatory adjustments and deductions in accordance with
section 217.22(a) and (b).
(4) Total capital
minority interest includable in the total capital of the Board-regulated
institution. The amount of total capital minority interest that
a Board-regulated institution may include in total capital must be
no greater than 10 percent of the sum of all total capital elements
of the Board-regulated institution (not including the total capital
minority interest itself), less any total capital regulatory adjustments
and deductions in accordance with section 217.22(a) and (b).
(b) (1) Applicability. For purposes of section 217.20, an advanced approaches
Board-regulated institution is subject to the minority interest limitations
in this paragraph (b) if:
(i) A consolidated subsidiary of the
advanced approaches Board-regulated institution has issued regulatory
capital that is not owned by the Board-regulated institution; and
(ii) For each relevant
regulatory capital ratio of the consolidated subsidiary, the ratio
exceeds the sum of the subsidiary’s minimum regulatory capital requirements
plus its capital conservation buffer.
(2) Difference
in capital adequacy standards at the subsidiary level. For purposes
of the minority interest calculations in this section, if the consolidated
subsidiary issuing the capital is not subject to capital adequacy
standards similar to those of the advanced approaches Board-regulated
institution, the advanced approaches Board-regulated institution must
assume that the capital adequacy standards of the advanced approaches
Board-regulated institution apply to the subsidiary.
(3) Common equity
tier 1 minority interest includable in the common equity tier 1 capital
of the Board-regulated institution. For each consolidated subsidiary
of an advanced approaches Board-regulated institution, the amount
of common equity tier 1 minority interest the advanced approaches
Board-regulated institution may include in common equity tier 1 capital
is equal to:
(i) The common equity tier 1 minority
interest of the subsidiary; minus
(ii) The percentage of the subsidiary’s
common equity tier 1 capital that is not owned by the advanced approaches
Board-regulated institution, multiplied by the difference between
the common equity tier 1 capital of the subsidiary and the lower of:
(A) The amount of common equity tier 1 capital the subsidiary must
hold, or would be required to hold pursuant this paragraph (b), to
avoid restrictions on distributions and discretionary bonus payments
under section 217.11 or equivalent standards established by the subsidiary’s
home country supervisor; or
(B)(1) The standardized
total risk-weighted assets of the advanced approaches Board-regulated
institution that relate to the subsidiary multiplied by
(2) The common equity
tier 1 capital ratio the subsidiary must maintain to avoid restrictions
on distributions and discretionary bonus payments under section 217.11
or equivalent standards established by the subsidiary’s home country
supervisor.
(4) Tier 1 minority interest includable in the tier 1 capital of the
advanced approaches Board-regulated institution. For each consolidated
subsidiary of the advanced approaches Board-regulated institution,
the amount of tier 1 minority interest the advanced approaches Board-regulated
institution may include in tier 1 capital is equal to:
(i) The
tier 1 minority interest of the subsidiary; minus
(ii) The percentage of the subsidiary’s
tier 1 capital that is not owned by the advanced approaches Board-regulated
institution multiplied by the difference between the tier 1 capital
of the subsidiary and the lower of:
(A) The amount of tier 1 capital
the subsidiary must hold, or would be required to hold pursuant to
this paragraph (b), to avoid restrictions on distributions and discretionary
bonus payments under section 217.11 or equivalent standards established
by the subsidiary’s home country supervisor, or
(B)(1) The standardized
total risk-weighted assets of the advanced approaches Board-regulated
institution that relate to the subsidiary multiplied by
(2) The tier 1 capital
ratio the subsidiary must maintain to avoid restrictions on distributions
and discretionary bonus payments under section 217.11 or equivalent
standards established by the subsidiary’s home country supervisor.
(5) Total capital
minority interest includable in the total capital of the Board-regulated
institution. For each consolidated subsidiary of the advanced
approaches Board-regulated institution, the amount of total capital
minority interest the advanced approaches Board-regulated institution
may include in total capital is equal to:
(i) The total capital
minority interest of the subsidiary; minus
(ii) The percentage of the subsidiary’s
total capital that is not owned by the advanced approaches Board-regulated
institution multiplied by the difference between the total capital
of the subsidiary and the lower of:
(A) The amount of total capital
the subsidiary must hold, or would be required to hold pursuant to
this paragraph (b), to avoid restrictions on distributions and discretionary
bonus payments under section 217.11 or equivalent standards established
by the subsidiary’s home country supervisor, or
(B)(1) The standardized
total risk-weighted assets of the advanced approaches Board-regulated
institution that relate to the subsidiary multiplied by
(2) The total capital
ratio the subsidiary must maintain to avoid restrictions on distributions
and discretionary bonus payments under section 217.11 or equivalent
standards established by the subsidiary’s home country supervisor.
