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29 Cards in this Set
- Front
- Back
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Tier 1 Leverage Well Capitalized |
>= 5% |
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Tier 1 Leverage Adequately Capitalized |
>= 4% |
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Tier 1 Leverage Undercapitalized |
< 4% |
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Tier 1 Leverage Significantly Undercapitalized |
< 3% |
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CE Tier 1 RBC Well Capitalized |
>= 6.5% |
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CE Tier 1 RBC Adequately Capitalized |
>= 4.5% |
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CE Tier 1 RBC Undercapitalized |
< 4.5% |
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CE Tier 1 RBC Significantly Undercapitalized |
< 3% |
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Tier 1 RBC Well Capitalized |
>= 8% |
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Tier 1 RBC Adequately Capitalized |
>= 6% |
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Tier 1 RBC Undercapitalized |
< 6% |
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Tier 1 RBC Significantly Undercapitalized |
< 4% |
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Total RBC Well Capitalized |
>=10% |
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Total RBC Adequately Capitalized |
>= 8% |
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Total RBC Undercapitalized |
< 8% |
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Total RBC Significantly Undercapitalized |
< 6% |
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Critically Undercapitalized |
Tangible equity capital ratio* that is <= 2% *Tier 1 Capital + outstanding non-Tier 1 perpetual preferred stock |
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Tier 2 Capital |
-ALLL (up to 1.25% of gross RWA) -qualifying preferred stock -subordinated debt -qualifying Tier 2 minority interests -MINUS any deduction in the Tier 2 instruments of an unconsolidated financial institution |
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Common Equity Tier 1 Capital
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-common stock -surplus -retained earnings -AOCI (if the bank did not opt out) -qualifying CET1 minority interests (example?) -common stock issues as part of an ESOP -Less: regulatory adjustments & deductions -intangibles/goodwill -DTAs arising from NOL and tax credit carry-forwards -Any gain on sale in connection with securitizations -Aggregate amount of bank's equity investment in its unconsolidated financial subsidiaries
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What is included in Additional Tier 1 Capital
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-qualifying noncumulative perpetual preferred stock -Bank-insured SBLF and TARP that previously qualified for Tier 1 -Qualifying Tier 1 minority interest less certain investments in other consolidated financial institution’s instruments that would qualify as additional Tier 1 capital (???) |
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What are the threshold deductions for MSAs, DTAs, and significant investments in another unconsolidated institution’s common stock? |
-Must deduct exposure that exceeds 10% of CET1 -Aggregate limit of 15% total for all 3 -Amount of items not deducted are assigned a 250% risk-weight (once Part 324 is fully phased in) |
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What is total risk based capital? |
Common Equity Tier 1 Capital + Tier 1 + Tier 2 Capital |
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Investments in Capital Instruments of Other Financial Institutions |
Non-significant: 10% or less of the issued and outstanding common stock. If so, investments in all types of capital instruments of the subject institution would be deemed non-significant. Significant: More than 10% of the issued and outstanding common stock. If so, investments in all types of capital instruments would be deemed significant. both are limited to 10% of CET1; any excess must be deducted from capital |
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LESS: Excess allowance for loan and lease losses |
The amount, if any by which the bank's ALLL exceeds 1.25% of the bank's RWAs |
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Regulation O capital |
Tier 1 capital + Tier 2 capital + ineligible ALLL |
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Treatment of goodwill for the calcs |
Goodwill appears to usually be considers a party of "equity capital" that needs to be deducted from capital and assets to make the calculation |
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Remember this difference between Part 325 (old) and Part 324 (new) |
Part 324 eliminates limits on term subordinated debt, limited life preferred stock, and the amount of Tier 2 allowable in total capital |
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Trust preferred securities grandfathered into T1 capital are limited to _____% of T1 capital |
25% |
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What is the credit conversion factor for repurchase agreements? |
100%
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