{"identifier":"/us/usc/t12/s5371","title":12,"num":"\u00a7\u202f5371.","heading":"Leverage and risk-based capital requirements","text":"\u00a7\u202f5371.\nLeverage and risk-based capital requirements\n(a)\nDefinitions\nFor purposes of this section, the following definitions shall apply:\n(1)\nGenerally applicable leverage capital requirements\nThe term \u201cgenerally applicable leverage capital requirements\u201d means\u2014\n(A) the minimum ratios of tier 1 capital to average total assets, as established by the appropriate Federal banking agencies to apply to insured depository institutions under the prompt corrective action regulations implementing section 1831\no\n(B) includes the regulatory capital components in the numerator of that capital requirement, average total assets in the denominator of that capital requirement, and the required ratio of the numerator to the denominator.\n(2)\nGenerally applicable risk-based capital requirements\nThe term \u201cgenerally applicable risk-based capital requirements\u201d means\u2014\n(A) the risk-based capital requirements, as established by the appropriate Federal banking agencies to apply to insured depository institutions under the prompt corrective action regulations implementing section 1831\no\n(B) includes the regulatory capital components in the numerator of those capital requirements, the risk-weighted assets in the denominator of those capital requirements, and the required ratio of the numerator to the denominator.\n(3)\nDefinition of depository institution holding company\nThe term \u201cdepository institution holding company\u201d means a bank holding company or a savings and loan holding company (as those terms are defined in\nsection 1813 of this title\n(4)\nBusiness of insurance\nThe term \u201cbusiness of insurance\u201d has the same meaning as in\nsection 5481(3) of this title\n(5)\nPerson regulated by a State insurance regulator\nThe term \u201cperson regulated by a State insurance regulator\u201d has the same meaning as in\nsection 5481(22) of this title\n(6)\nRegulated foreign subsidiary and regulated foreign affiliate\nThe terms \u201cregulated foreign subsidiary\u201d and \u201cregulated foreign affiliate\u201d mean a person engaged in the business of insurance in a foreign country that is regulated by a foreign insurance regulatory authority that is a member of the International Association of Insurance Supervisors or other comparable foreign insurance regulatory authority as determined by the Board of Governors following consultation with the State insurance regulators, including the lead State insurance commissioner (or similar State official) of the insurance holding company system as determined by the procedures within the Financial Analysis Handbook adopted by the National Association of Insurance Commissioners, where the person, or its principal United States insurance affiliate, has its principal place of business or is domiciled, but only to the extent that\u2014\n(A) such person acts in its capacity as a regulated insurance entity; and\n(B) the Board of Governors does not determine that the capital requirements in a specific foreign jurisdiction are inadequate.\n(7)\nCapacity as a regulated insurance entity\nThe term \u201ccapacity as a regulated insurance entity\u201d\u2014\n(A) includes any action or activity undertaken by a person regulated by a State insurance regulator or a regulated foreign subsidiary or regulated foreign affiliate of such person, as those actions relate to the provision of insurance, or other activities necessary to engage in the business of insurance; and\n(B) does not include any action or activity, including any financial activity, that is not regulated by a State insurance regulator or a foreign agency or authority and subject to State insurance capital requirements or, in the case of a regulated foreign subsidiary or regulated foreign affiliate, capital requirements imposed by a foreign insurance regulatory authority.\n(b)\nMinimum capital requirements\n(1)\nMinimum leverage capital requirements\nThe appropriate Federal banking agencies shall establish minimum leverage capital requirements on a consolidated basis for insured depository institutions, depository institution holding companies, and nonbank financial companies supervised by the Board of Governors. The minimum leverage capital requirements established under this paragraph shall not be less than the generally applicable leverage capital requirements, which shall serve as a floor for any capital requirements that the agency may require, nor quantitatively lower than the generally applicable leverage capital requirements that were in effect for insured depository institutions as of\nJuly 21, 2010\n(2)\nMinimum risk-based capital requirements\nThe appropriate Federal banking agencies shall establish minimum risk-based capital requirements on a consolidated basis for insured depository institutions, depository institution holding companies, and nonbank financial companies supervised by the Board of Governors. The minimum risk-based capital requirements established under this paragraph shall not be less than the generally applicable risk-based capital requirements, which shall serve as a floor for any capital requirements that the agency may require, nor quantitatively lower than the generally applicable risk-based capital requirements that were in effect for insured depository institutions as of\nJuly 21, 2010\n(3)\nInvestments in financial subsidiaries\nFor purposes of this section, investments in financial subsidiaries that insured depository institutions are required to deduct from regulatory capital under\nsection 24a of this title\nsection 1831w(a)(2) of this title\n(4)\nEffective dates and phase-in periods\n(A)\nDebt or equity instruments on or after May 19, 2010\nFor debt or equity instruments issued on or after\nMay 19, 2010\nMay 19, 2010\n(B)\nDebt or equity instruments issued before May 19, 2010\nFor debt or equity instruments issued before\nMay 19, 2010\nJanuary 1, 2013\n(C)\nDebt or equity instruments of smaller institutions\nFor debt or equity instruments issued before\nMay 19, 2010\nDecember 31, 2009\nMarch 31, 2010\nMay 19, 2010\n(D)\nDepository institution holding companies not previously supervised by the Board of Governors\nFor any depository institution holding company that was not supervised by the Board of Governors as of\nMay 19, 2010\nJuly 21, 2010\n1\n1 So in original. Probably should be followed by a period.\n(E)\nCertain bank holding company subsidiaries of foreign banking organizations\nFor bank holding company subsidiaries of foreign banking organizations that have relied on Supervision and Regulation Letter SR-01-1 issued by the Board of Governors (as in effect on\nMay 19, 2010\nJuly 21, 2010\n(5)\nExceptions\nThis section shall not apply to\u2014\n(A) debt or equity instruments issued to the United States or any agency or instrumentality thereof pursuant to the Emergency Economic Stabilization Act of 2008 [\n12 U.S.C. 5201\nOctober 4, 2010\n(B) any Federal home loan bank; or\n(C) any bank holding company or savings and loan holding company that is subject to the application of appendix C to part 225 of title 12, Code of Federal Regulations (commonly known as the \u201cSmall Bank Holding Company and Savings and Loan Holding Company Policy Statement\u201d).\n(6)\nStudy and report on small institution access to capital\n(A)\nStudy required\nThe Comptroller General of the United States, after consultation with the Federal banking agencies, shall conduct a study of access to capital by smaller insured depository institutions.\n(B)\nScope\nFor purposes of this study required by subparagraph (A), the term \u201csmaller insured depository institution\u201d means an insured depository institution with total consolidated assets of $5,000,000,000 or less.\n(C)\nReport to Congress\nNot later than 18 months after\nJuly 21, 2010\n(7)\nCapital requirements to address activities that pose risks to the financial system\n(A)\nIn general\nSubject to the recommendations of the Council, in accordance with\nsection 5330 of this title\n(B)\nContent\nSuch rules shall address, at a minimum, the risks arising from\u2014\n(i) significant volumes of activity in derivatives, securitized products purchased and sold, financial guarantees purchased and sold, securities borrowing and lending, and repurchase agreements and reverse repurchase agreements;\n(ii) concentrations in assets for which the values presented in financial reports are based on models rather than historical cost or prices deriving from deep and liquid 2-way markets; and\n(iii) concentrations in market share for any activity that would substantially disrupt financial markets if the institution is forced to unexpectedly cease the activity.\n(c)\nClarification\n(1)\nIn general\nIn establishing the minimum leverage capital requirements and minimum risk-based capital requirements on a consolidated basis for a depository institution holding company or a nonbank financial company supervised by the Board of Governors as required under paragraphs (1) and (2) of subsection (b), the appropriate Federal banking agencies shall not be required to include, for any purpose of this section (including in any determination of consolidation), a person regulated by a State insurance regulator or a regulated foreign subsidiary or a regulated foreign affiliate of such person engaged in the business of insurance, to the extent that such person acts in its capacity as a regulated insurance entity.\n(2)\nRule of construction on Board\u2019s authority\nThis subsection shall not be construed to prohibit, modify, limit, or otherwise supersede any other provision of Federal law that provides the Board of Governors authority to issue regulations and orders relating to capital requirements for depository institution holding companies or nonbank financial companies supervised by the Board of Governors.\n(3)\nRule of construction on accounting principles\n(A)\nIn general\nA depository institution holding company or nonbank financial company supervised by the Board of Governors of the Federal Reserve that is also a person regulated by a State insurance regulator that is engaged in the business of insurance that files financial statements with a State insurance regulator or the National Association of Insurance Commissioners utilizing only Statutory Accounting Principles in accordance with State law, shall not be required by the Board under the authority of this section or the authority of the Home Owners\u2019 Loan Act [\n12 U.S.C. 1461\n(B)\nPreservation of authority\nNothing in subparagraph (A) shall limit the authority of the Board under any other applicable provision of law to conduct any regulatory or supervisory activity of a depository institution holding company or non-bank financial company supervised by the Board of Governors, including the collection or reporting of any information on an entity or group-wide basis. Nothing in this paragraph shall excuse the Board from its obligations to comply with\nsection 5361(a) of this title\n12 U.S.C. 1467a(b)(2)","url":"https://projectusc.org/usc/t12/s5371.html","content":[{"t":"sec","id":"/us/usc/t12/s5371","children":[{"t":"num","text":"\u00a7\u202f5371."},{"t":"heading","text":"Leverage and risk-based capital requirements"},{"t":"subsec","id":"/us/usc/t12/s5371/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Definitions"},{"t":"chapeau","text":"For purposes of this section, the following definitions shall apply:"},{"t":"para","id":"/us/usc/t12/s5371/a/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Generally applicable leverage capital requirements"},{"t":"chapeau","text":"The term \u201cgenerally applicable leverage capital requirements\u201d means\u2014"},{"t":"subpara","id":"/us/usc/t12/s5371/a/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" the minimum ratios of tier 1 capital to average total assets, as established by the appropriate Federal banking agencies to apply to insured depository institutions under the prompt corrective action regulations implementing section 1831","children":[{"t":"text","text":"o","tail":" of this title, regardless of total consolidated asset size or foreign financial exposure; and"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s5371/a/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" includes the regulatory capital components in the numerator of that capital requirement, average total assets in the denominator of that capital requirement, and the required ratio of the numerator to the denominator.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s5371/a/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Generally applicable risk-based capital requirements"},{"t":"chapeau","text":"The term \u201cgenerally applicable risk-based capital requirements\u201d means\u2014"},{"t":"subpara","id":"/us/usc/t12/s5371/a/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" the risk-based capital requirements, as established by the appropriate Federal banking agencies to apply to insured depository institutions under the prompt corrective action regulations implementing section 1831","children":[{"t":"text","text":"o","tail":" of this title, regardless of total consolidated asset size or foreign financial exposure; and"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s5371/a/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" includes the regulatory capital components in the numerator of those capital requirements, the risk-weighted assets in the denominator of those capital requirements, and the required ratio of the numerator to the denominator.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s5371/a/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Definition of depository institution holding company"},{"t":"content","children":[{"t":"p","text":"The term \u201cdepository institution holding company\u201d means a bank holding company or a savings and loan holding company (as those terms are defined in ","children":[{"t":"ref","text":"section 1813 of this title","href":"/us/usc/t12/s1813","tail":") that is organized in the United States, including any bank or savings and loan holding company that is owned or controlled by a foreign organization, but does not include the foreign organization."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s5371/a/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Business of insurance"},{"t":"content","children":[{"t":"p","text":"The term \u201cbusiness of insurance\u201d has the same meaning as in ","children":[{"t":"ref","text":"section 5481(3) of this title","href":"/us/usc/t12/s5481/3","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s5371/a/5","children":[{"t":"num","text":"(5)"},{"t":"heading","text":"Person regulated by a State insurance regulator"},{"t":"content","children":[{"t":"p","text":"The term \u201cperson regulated by a State insurance regulator\u201d has the same meaning as in ","children":[{"t":"ref","text":"section 5481(22) of this title","href":"/us/usc/t12/s5481/22","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s5371/a/6","children":[{"t":"num","text":"(6)"},{"t":"heading","text":"Regulated foreign subsidiary and regulated foreign affiliate"},{"t":"chapeau","text":"The terms \u201cregulated foreign subsidiary\u201d and \u201cregulated foreign affiliate\u201d mean a person engaged in the business of insurance in a foreign country that is regulated by a foreign insurance regulatory authority that is a member of the International Association of Insurance Supervisors or other comparable foreign insurance regulatory authority as determined by the Board of Governors following consultation with the State insurance regulators, including the lead State insurance commissioner (or similar State official) of the insurance holding company system as determined by the procedures within the Financial Analysis Handbook adopted by the National Association of Insurance Commissioners, where the person, or its principal United States insurance affiliate, has its principal place of business or is domiciled, but only to the extent that\u2014"},{"t":"subpara","id":"/us/usc/t12/s5371/a/6/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" such person acts in its capacity as a regulated insurance entity; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s5371/a/6/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" the Board of Governors does not determine that the capital requirements in a specific foreign jurisdiction are inadequate.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s5371/a/7","children":[{"t":"num","text":"(7)"},{"t":"heading","text":"Capacity as a regulated insurance entity"},{"t":"chapeau","text":"The term \u201ccapacity as a regulated insurance entity\u201d\u2014"},{"t":"subpara","id":"/us/usc/t12/s5371/a/7/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" includes any action or activity undertaken by a person regulated by a State insurance regulator or a regulated foreign subsidiary or regulated foreign affiliate of such person, as those actions relate to the provision of insurance, or other activities necessary to engage in the business of insurance; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s5371/a/7/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" does not include any action or activity, including any financial activity, that is not regulated by a State insurance regulator or a foreign agency or authority and subject to State insurance capital requirements or, in the case of a regulated foreign subsidiary or regulated foreign affiliate, capital requirements imposed by a foreign insurance regulatory authority.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s5371/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Minimum capital requirements"},{"t":"para","id":"/us/usc/t12/s5371/b/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Minimum leverage capital requirements"},{"t":"content","children":[{"t":"p","text":"The appropriate Federal banking agencies shall establish minimum leverage capital requirements on a consolidated basis for insured depository institutions, depository institution holding companies, and nonbank financial companies supervised by the Board of Governors. The minimum leverage capital requirements established under this paragraph shall not be less than the generally applicable leverage capital requirements, which shall serve as a floor for any capital requirements that the agency may require, nor quantitatively lower than the generally applicable leverage capital requirements that were in effect for insured depository institutions as of ","children":[{"t":"text","text":"July 21, 2010","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s5371/b/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Minimum risk-based capital requirements"},{"t":"content","children":[{"t":"p","text":"The appropriate Federal banking agencies shall establish minimum risk-based capital requirements on a consolidated basis for insured depository institutions, depository institution holding companies, and nonbank financial companies supervised by the Board of Governors. The minimum risk-based capital requirements established under this paragraph shall not be less than the generally applicable risk-based capital requirements, which shall serve as a floor for any capital requirements that the agency may require, nor quantitatively lower than the generally applicable risk-based capital requirements that were in effect for insured depository institutions as of ","children":[{"t":"text","text":"July 21, 2010","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s5371/b/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Investments in financial subsidiaries"},{"t":"content","children":[{"t":"p","text":"For purposes of this section, investments in financial subsidiaries that insured depository institutions are required to deduct from regulatory capital under ","children":[{"t":"ref","text":"section 24a of this title","href":"/us/usc/t12/s24a","tail":" or "},{"t":"ref","text":"section 1831w(a)(2) of this title","href":"/us/usc/t12/s1831w/a/2","tail":" need not be deducted from regulatory capital by depository institution holding companies or nonbank financial companies supervised by the Board of Governors, unless such capital deduction is required by the Board of Governors or the primary financial regulatory agency in the case of nonbank financial companies supervised by the Board of Governors."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s5371/b/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Effective dates and phase-in periods"},{"t":"subpara","id":"/us/usc/t12/s5371/b/4/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Debt or equity instruments on or after May 19, 2010"},{"t":"content","children":[{"t":"p","text":"For debt or equity instruments issued on or after ","children":[{"t":"text","text":"May 19, 2010","tail":", by depository institution holding companies or by nonbank financial companies supervised by the Board of Governors, this section shall be deemed to have become effective as of "},{"t":"text","text":"May 19, 2010","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s5371/b/4/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Debt or equity instruments issued before May 19, 2010"},{"t":"content","children":[{"t":"p","text":"For debt or equity instruments issued before ","children":[{"t":"text","text":"May 19, 2010","tail":", by depository institution holding companies or by nonbank financial companies supervised by the Board of Governors, any regulatory capital deductions required under this section shall be phased in incrementally over a period of 3 years, with the phase-in period to begin on "},{"t":"text","text":"January 1, 2013","tail":", except as set forth in subparagraph (C)."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s5371/b/4/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Debt or equity instruments of smaller institutions"},{"t":"content","children":[{"t":"p","text":"For debt or equity instruments issued before ","children":[{"t":"text","text":"May 19, 2010","tail":", by depository institution holding companies with total consolidated assets of less than $15,000,000,000 as of "},{"t":"text","text":"December 31, 2009","tail":", or "},{"t":"text","text":"March 31, 2010","tail":", and by organizations that were mutual holding companies on "},{"t":"text","text":"May 19, 2010","tail":", the capital deductions that would be required for other institutions under this section are not required as a result of this section."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s5371/b/4/D","children":[{"t":"num","text":"(D)"},{"t":"heading","text":"Depository institution holding companies not previously supervised by the Board of Governors"},{"t":"content","children":[{"t":"p","text":"For any depository institution holding company that was not supervised by the Board of Governors as of ","children":[{"t":"text","text":"May 19, 2010","tail":", the requirements of this section, except as set forth in subparagraphs (A) and (B), shall be effective 5 years after "},{"t":"text","text":"July 21, 2010","tail":"\u202f"},{"t":"ref","text":"1"},{"t":"num","text":"1","tail":"\u202fSo in original. Probably should be followed by a period."},{"t":"text","text":"\u202fSo in original. Probably should be followed by a period."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s5371/b/4/E","children":[{"t":"num","text":"(E)"},{"t":"heading","text":"Certain bank holding company subsidiaries of foreign banking organizations"},{"t":"content","children":[{"t":"p","text":"For bank holding company subsidiaries of foreign banking organizations that have relied on Supervision and Regulation Letter SR-01-1 issued by the Board of Governors (as in effect on ","children":[{"t":"text","text":"May 19, 2010","tail":"), the requirements of this section, except as set forth in subparagraph (A), shall be effective 5 years after "},{"t":"text","text":"July 21, 2010","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s5371/b/5","children":[{"t":"num","text":"(5)"},{"t":"heading","text":"Exceptions"},{"t":"chapeau","text":"This section shall not apply to\u2014"},{"t":"subpara","id":"/us/usc/t12/s5371/b/5/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" debt or equity instruments issued to the United States or any agency or instrumentality thereof pursuant to the Emergency Economic Stabilization Act of 2008 [","children":[{"t":"ref","text":"12 U.S.C. 5201","href":"/us/usc/t12/s5201","tail":" et seq.], and prior to "},{"t":"text","text":"October 4, 2010","tail":";"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s5371/b/5/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" any Federal home loan bank; or","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s5371/b/5/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" any bank holding company or savings and loan holding company that is subject to the application of appendix C to part 225 of title 12, Code of Federal Regulations (commonly known as the \u201cSmall Bank Holding Company and Savings and Loan Holding Company Policy Statement\u201d).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s5371/b/6","children":[{"t":"num","text":"(6)"},{"t":"heading","text":"Study and report on small institution access to capital"},{"t":"subpara","id":"/us/usc/t12/s5371/b/6/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Study required"},{"t":"content","children":[{"t":"p","text":"The Comptroller General of the United States, after consultation with the Federal banking agencies, shall conduct a study of access to capital by smaller insured depository institutions.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s5371/b/6/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Scope"},{"t":"content","children":[{"t":"p","text":"For purposes of this study required by subparagraph (A), the term \u201csmaller insured depository institution\u201d means an insured depository institution with total consolidated assets of $5,000,000,000 or less.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s5371/b/6/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Report to Congress"},{"t":"content","children":[{"t":"p","text":"Not later than 18 months after ","children":[{"t":"text","text":"July 21, 2010","tail":", the Comptroller General of the United States shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report summarizing the results of the study conducted under subparagraph (A), together with any recommendations for legislative or regulatory action that would enhance the access to capital of smaller insured depository institutions, in a manner that is consistent with safe and sound banking operations."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s5371/b/7","children":[{"t":"num","text":"(7)"},{"t":"heading","text":"Capital requirements to address activities that pose risks to the financial system"},{"t":"subpara","id":"/us/usc/t12/s5371/b/7/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"Subject to the recommendations of the Council, in accordance with ","children":[{"t":"ref","text":"section 5330 of this title","href":"/us/usc/t12/s5330","tail":", the Federal banking agencies shall develop capital requirements applicable to insured depository institutions, depository institution holding companies, and nonbank financial companies supervised by the Board of Governors that address the risks that the activities of such institutions pose, not only to the institution engaging in the activity, but to other public and private stakeholders in the event of adverse performance, disruption, or failure of the institution or the activity."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s5371/b/7/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Content"},{"t":"chapeau","text":"Such rules shall address, at a minimum, the risks arising from\u2014"},{"t":"clause","id":"/us/usc/t12/s5371/b/7/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" significant volumes of activity in derivatives, securitized products purchased and sold, financial guarantees purchased and sold, securities borrowing and lending, and repurchase agreements and reverse repurchase agreements;","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s5371/b/7/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" concentrations in assets for which the values presented in financial reports are based on models rather than historical cost or prices deriving from deep and liquid 2-way markets; and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s5371/b/7/B/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" concentrations in market share for any activity that would substantially disrupt financial markets if the institution is forced to unexpectedly cease the activity.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s5371/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Clarification"},{"t":"para","id":"/us/usc/t12/s5371/c/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"In establishing the minimum leverage capital requirements and minimum risk-based capital requirements on a consolidated basis for a depository institution holding company or a nonbank financial company supervised by the Board of Governors as required under paragraphs (1) and (2) of subsection (b), the appropriate Federal banking agencies shall not be required to include, for any purpose of this section (including in any determination of consolidation), a person regulated by a State insurance regulator or a regulated foreign subsidiary or a regulated foreign affiliate of such person engaged in the business of insurance, to the extent that such person acts in its capacity as a regulated insurance entity.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s5371/c/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Rule of construction on Board\u2019s authority"},{"t":"content","children":[{"t":"p","text":"This subsection shall not be construed to prohibit, modify, limit, or otherwise supersede any other provision of Federal law that provides the Board of Governors authority to issue regulations and orders relating to capital requirements for depository institution holding companies or nonbank financial companies supervised by the Board of Governors.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s5371/c/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Rule of construction on accounting principles"},{"t":"subpara","id":"/us/usc/t12/s5371/c/3/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"A depository institution holding company or nonbank financial company supervised by the Board of Governors of the Federal Reserve that is also a person regulated by a State insurance regulator that is engaged in the business of insurance that files financial statements with a State insurance regulator or the National Association of Insurance Commissioners utilizing only Statutory Accounting Principles in accordance with State law, shall not be required by the Board under the authority of this section or the authority of the Home Owners\u2019 Loan Act [","children":[{"t":"ref","text":"12 U.S.C. 1461","href":"/us/usc/t12/s1461","tail":" et seq.] to prepare such financial statements in accordance with Generally Accepted Accounting Principles."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s5371/c/3/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Preservation of authority"},{"t":"content","children":[{"t":"p","text":"Nothing in subparagraph (A) shall limit the authority of the Board under any other applicable provision of law to conduct any regulatory or supervisory activity of a depository institution holding company or non-bank financial company supervised by the Board of Governors, including the collection or reporting of any information on an entity or group-wide basis. Nothing in this paragraph shall excuse the Board from its obligations to comply with ","children":[{"t":"ref","text":"section 5361(a) of this title","href":"/us/usc/t12/s5361/a","tail":" and section 10(b)(2) of the Home Owners\u2019 Loan Act ("},{"t":"ref","text":"12 U.S.C. 1467a(b)(2)","href":"/us/usc/t12/s1467a/b/2","tail":"), as appropriate."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}