(a) General requirements.
(1) A foreign banking
organization subject to this subpart and with average total consolidated
assets of $250 billion or more must certify to the Board that it meets
capital adequacy standards on a consolidated basis established by
its home-country supervisor that are consistent with the regulatory
capital framework published by the Basel Committee on Banking Supervision,
as amended from time to time (Basel Capital Framework).
(2) In the event that a home-country supervisor
has not established capital adequacy standards that are consistent
with the Basel Capital Framework, the foreign banking organization
must demonstrate to the satisfaction of the Board that it would meet
or exceed capital adequacy standards on a consolidated basis that
are consistent with the Basel Capital Framework were it subject to
such standards.
(b) Reporting. A foreign banking organization subject to this subpart and with
average total consolidated assets of $250 billion or more must provide
to the Board reports relating to its compliance with the capital adequacy
measures described in paragraph (a) of this section concurrently with
filing the FR Y-7Q.
(c) Noncompliance
with the Basel Capital Framework. If a foreign banking organization
does not satisfy the requirements of this section, the Board may impose
requirements, conditions, or restrictions, including risk-based or
leverage capital requirements, relating to the activities or business
operations of the U.S. operations of the organization. The Board will
coordinate with any relevant State or Federal regulator in the implementation
of such requirements, conditions, or restrictions. If the Board determines
to impose one or more requirements, conditions, or restrictions under
this paragraph, the Board will notify the organization before it applies
any requirement, condition or restriction, and describe the basis
for imposing such requirement, condition, or restriction. Within 14
calendar days of receipt of a notification under this paragraph, the
organization may request in writing that the Board reconsider the
requirement, condition, or restriction. The Board will respond in
writing to the organization’s request for reconsideration prior
to applying the requirement, condition, or restriction.
