As used in this part, unless
the context requires otherwise:
(a) Bank means an insured depository institution, as defined in section 3
of the Federal Deposit Insurance Act (12 U.S.C. 1813), and includes
an insured national bank, state bank, District bank, or savings association,
and an insured branch of a foreign bank.
(b) Commonly controlled correspondent means a correspondent that
is commonly controlled with the bank and for which the bank is subject
to liability under section 5(e) of the Federal Deposit Insurance Act.
A correspondent is considered to be commonly controlled with the bank
if—
(1) 25 percent or more of
any class of voting securities of the bank and the correspondent are
owned, directly or indirectly, by the same depository institution
or company; or
(2)
either the bank or the correspondent owns 25 percent or more of any
class of voting securities of the other.
3-003
(c) Correspondent means a U.S. depository institution or a
foreign bank, as defined in this part, to which a bank has exposure,
but does not include a commonly controlled correspondent.
(d) Exposure means the potential that an obligation
will not be paid in a timely manner or in full. “Exposure” includes
credit and liquidity risks, including operational risks, related to
intraday and interday transactions.
(e) Foreign
bank means an institution that—
(1) is organized under the laws of a country
other than the United States;
(2) engages in the business of banking;
(3) is recognized as
a bank by the bank supervisory or monetary authorities of the country
of the bank’s organization;
(4) receives deposits to a substantial
extent in the regular course of business; and
(5) has the power to accept demand deposits.
3-004
(f) Primary federal supervisor has the same
meaning as the term “appropriate federal banking agency” in section
3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
(g)
Total capital means the total of a bank’s tier 1 and tier 2 capital
under the risk-based capital guidelines provided by the bank’s primary
federal supervisor.
* For a qualifying community
banking organization (as defined in section 217.12 of this chapter)
that is subject to the community bank leverage ratio framework (as
defined in section 217.12 of this chapter), total capital means the
bank’s tier 1 capital (as defined in section 217.2 of
this chapter
and calculated in accordance with section 217.12(b) of this chapter).
For an insured branch of a foreign bank organized under the laws of
a country that subscribes to the principles of the Basel Capital Accord,
“total capital” means total tier 1 and tier 2 capital as calculated
under the standards of that country. For an insured branch of a foreign
bank organized under the laws of a country that does not subscribe
to the principles of the Basel Capital Accord (Accord), “total capital”
means total tier 1 and tier 2 capital as calculated under the provisions
of the Accord.
(h) U.S. depository
institution means a bank, as defined in section 206.2(a) of this
part, other than an insured branch of a foreign bank.
