12 CFR 628.23
§ 628.23 Limit on inclusion of third-party capital in total (tier 1 and tier 2) capital.
United States · 12 CFR — Banks and Banking · Status: effective
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- Citation
- 12 CFR 628.23, § 628.23 Limit on inclusion of third-party capital in total (tier 1 and tier 2) capital, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/48203
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Full text
The combined amount of third-party capital instruments that a System institution may include in total (tier 1 and tier 2) capital is equal to the greater of the following:
(a) The then existing limit, if any; or
(b) The lesser of:
(1) Forty percent of total capital, calculated by taking two thirds of the average of the previous 4 quarters of total capital reported on the institution's Call Report filed with the FCA, less any amounts of third-party capital reported in total capital; or
(2) The average of the previous 4 quarters of CET1 capital reported on its Call Report filed with the FCA.
(c) Treatment of assets that are deducted. A System institution must exclude from total risk-weighted assets any item deducted from regulatory capital under this section.
Legislative history
This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.