Full text of Federal Reserve Bank of New York Circulars : 9124. Amendment to Regulation K

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FEDERAL RESERVE BANK
OF NEW YORK

Circular No. 9124
August 6, 1981

A M E N D M E N T TO REG ULATIO N K
Capital R equirem ents of E d ge Corporations
To All Member Banks, Edge and Agreement Corporations, and Bank Holding
Companies in the Second Federal Reserve District, and Others Concerned:

The Board of Governors of the Federal Reserve System has amended its
Regulation K, “International Banking Operations,” in order to perm it the inclusion of
certain subordinated notes and debentures in the determination of capital adequacy of
Edge Corporations.
Enclosed is a copy of the amendment. Questions regarding this m atter may be
directed to our Foreign Banking Applications Department (Tel. No. 212-791-5878 or
5881).




A nthony M. S olomon,
President.

B oard of G overnors of the F ed eral R eserve System
IN T E R N A T IO N A L BA N K IN G O PERA TIO N S

AMENDMENT TO REGULATION K
(effective J u ly 29, 1981)

Capital Requirements of Edge Corporations

AGENCY:

Board

of

ACTION:

Final

rule.

SUMMARY:

The

C.F.R.

§

within

the

Board

211.6(d))

determining

of

section
50

of

EFFECTIVE

FOR

Radish,
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of

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persons
of

its

"Capital
and

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capital

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order

capital
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means

purposes.

to

the

[Enc. Cir. No. 9124]




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Washington,

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cent
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217.1(f)

and

211.2(b)).

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capital

subordinated

of

could

(202/452-3428),

deposits

Section

surplus

notes

204.2(a)(1)
section

accepts

Regulation
notes

solely

surplus

Frederick

Section

Edge

character

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on

assets.

includes

CONTACT:

Legal

of

Corporations.

debentures

C.F.R.

System.

1981.

INFORMATION:

that

must
risk

29,

Reserve

must

scope

Corporation

(12

surplus"

capital

Supervision

requirements

Corporation

K

211.6(d)

Edge

and

Reserve

subordinated

and

of

notes

total

INFORMATION

Attorney,

capital

the

July

section

"capital

such

Federal

certain

adequacy

the

Banking

SUPPLEMENTARY

to

of

the

amended

of

Regulation

DATE:

FURTHER

Division

cent

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include

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211.6(d),

per

211.2(b)

has
to

definition

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than

Governors

be

to

(12

more

determined
capital

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§

under

section

Edge

surplus

or

217.1(f)).

flexibility

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204.2(a)(1)),

C.F.R.

that

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for

"deposits"

C.F.R.
Q

include

surplus

to

meet

Corporations
for

capital

(OVER)

L.

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29,

1981,

LENDING

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to

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definition

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under

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C.F.R.

Chapter

II

For

amount

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not

determining

bank;
basis

risk
other

States,

than

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exceed

shall

cash,

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per

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purpose,

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and

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approval

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amount

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a

to

restriction

unnecessary

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adequacy
are

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capital

member

respect

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section

the

proposal

of

are

comment

Federal

bank

participation

be

will
cent

without

operations,

far

of

in

member

stress
Edge

pursuant

capital

1981,

proposed

Board,

as

17,

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per

subordinated

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Council
use

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for

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efficient

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Examination
for

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of

public

rule

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qualify

more

continue
capital

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treatment

this

will

non-debt

they

surplus.

permit

notice

public

extent

Regulation

the

Inasmuch
tions

of

subordinated

Corporation

Board,

however,

level

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and

2 0 4 . 2 ( a ) ( 1 ) (vii)(C)
of

Board,

adequate

therefore,

sidered
of

of

in

deemed

amounts

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Government

to

of

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be

from

to

shall

the

By

order

effective




of
July

the
29,

Board

of

Governors

of

less

than

capital

all

7

notes

non-debt
same

capital,

manner
assets

banking

securities,

the

all

Corporation

and

Federal

Federal

Reserve

1981.

William W. Wiles
Secretary of the Board

on

institutions

sold.

System,

at

scope

times