The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
federal Reser ve Ba n k DALLAS, TEXAS of Dallas 75222 C i r c u l a r No. 83-152 December 28, 1983 CAPITAL ADEQUACY MINIMUM CAPITAL GUIDELINES TO ALL STATE MEMBER BANKS, BANK HOLDING COMPANIES AND OTHERS CONCERNED IN THE ELEVENTH FEDERAL RESERVE DISTRICT: The Board o f Governors o f t h e F e de ra l Reser ve System has r e a f f i r m e d t h e a d o p t i o n o f amendments t o i t s c a p i t a l adequacy g u i d e l i n e s . The amendments were a do pt e d J une 13, 1983; however, p u b l i c comments on t h e changes were a c c e p t e d t hr o u g h August 12, 1983. The new g u i d e l i n e s were d i s t r i b u t e d by C i r c u l a r No. 8 3 - 8 0 , d a t e d June 28, 1983. P r i n t e d on t h e r e v e r s e o f p r e s s r e l e a s e announci ng t h e a c t i o n . t h i s c i r c u l a r i s a copy o f t h e B o a r d ' s Q u e s t i o n s from s t a t e member banks s h ou ld be d i r e c t e d t o Wi l li am C. Reddick in o ur Bank S u p e r v i s i o n and R e g u l a t i o n s Dep ar tm en t, E x t e n s i o n 6274. Bank Holding Companies s h ou ld c o n t a c t Ri ch ar d J . Burda i n o u r Holding Company S u p e r v i s i o n De pa rt me nt , E x t e n s i o n 6472. A d d i t i o n a l c o p i e s o f t h i s c i r c u l a r w i l l be f u r n i s h e d upon r e q u e s t t o t h e P u b l i c A f f a i r s Dep ar tm en t, E x t e n s i o n 6289. Sincerely yours, Wi lli am H. Wallace F i r s t Vice P r e s i d e n t This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) Banks and others are encouraged to use the following incoming W ATS numbers in contacting this Bank: 1-800-442-7140 (intrastate) and 1-800-527-9200 (interstate). For calls placed locally, please use 651 plus the extension referred to above. FEDERAL RESERVE press release For immediate r e l e a s e December 1, 1983 The F e d e r a l R es er ve Board today announced t h a t i t has reviewed and r e a f f i r m e d amendments t o i t s c a p i t a l adequacy g u i d e l i n e s ado pt ed in June 1983. These amendments e s t a b l i s h e d an e x p l i c i t minimum c a p i t a l r a t i o guideline for m u l t i n a t i o n a l o r g a n i z a t i o n s o f 5 p e r c e n t , and expanded t h e d e f i n i t i o n of s e c o n d a r y c a p i t a l t o i n c l u d e u n s e c u r e d , l o n g - t e r m d e b t i s s u e d by a bank h o l d i n g company o r a nonbank a f f i l i a t e of t h e h o l d i n g company. The Board a c t e d i n t h e l i g h t o f comments r e c e i v e d s i n c e t h e amendments were a d op t e d and o f e x p e r i e n c e w i t h t h e g u i d e l i n e s . The Board n ot e d t h a t m u l t i n a t i o n a l bankiny o r y a n i z a t i o n s have s u b s t a n t i a l l y i n c r e a s e d th e ir capital yram i n 1981. r a t i o s s i n c e t h e i m p l e m e n t a t i o n of t h e c a p i t a l y u i d e l i n e s p ro The Board d e c i d e d a y a i n s t any f u r t h e r n ar rowing o f c a p i t a l r e q u i r e m e n t s of l a r g e r and s m a l l e r banki ny o r y a n i z a t i o n s a t t h i s t i m e . The Board r e i t e r a t e d t h a t f o r bank h o l d i n g company o r y a n i z a t i o n s w i th t o t a l a s s e t s e x c e e d i n g $150 m i l l i o n , t h e c a p i t a l g u i d e l i n e s ap pl y both t o i n d i v i d u a l banks i n t h e h o l d i n g company as well as t o t h e bank h o l d i n g company on a c o n s o l i d a t e d b a s i s . - 0 -
@FedFRASER