Code of Federal Regulations (Last Updated: November 8, 2024) |
Title 12 - Banks and Banking |
Chapter II - Federal Reserve System |
SubChapter A - Board of Governors of the Federal Reserve System |
Part 252 - Enhanced Prudential Standards (Regulation YY) |
Subpart B - Company-Run Stress Test Requirements for Certain U.S. Banking Organizations With Total Consolidated Assets Over $10 Billion and Less Than $50 Billion |
§ 252.12 - Definitions.
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§ 252.12 Definitions.
For purposes of this subpart, the following definitions apply:
(a)partAdvanced approaches means the regulatory capital requirements at 12 CFR
217, subpart E, as applicable, and any successor regulation.
(c)(b) Adverse scenario means a set of conditions that affect the U.S. economy or the financial condition of a bank holding company, savings and loan holding company, or state member bank that are more adverse than those associated with the baseline scenario and may include trading or other additional components.
: (1) For a bank holding company,Asset threshold means
$10 billion but less than $50 billion, andaverage total consolidated assets of greater than
(2) For a savings and loan holding company or state member bank, average total consolidated assets of greater than $10 billion.
(d) Average total consolidated assets means the average of the total consolidated assets as reported by a bank holding company, savings and loan holding company, or state member bank on its Consolidated Financial Statements for Bank Holding Companies (FR Y-9C) or Consolidated Report of Condition and Income (Call Report), as applicable, for the four most recent consecutive quarters. If the bank holding company, savings and loan holding company, or state member bank has not filed the FR Y-9C or Call Report, as applicable, for each of the four most recent consecutive quarters, average total consolidated assets means the average of the company's total consolidated assets, as reported on the company's FR Y-9C or Call Report, as applicable, for the most recent quarter or consecutive quarters. Average total consolidated assets are measured on the as-of date of the most recent FR Y-9C or Call Report, as applicable, used in the calculation of the average.
(f)(e) Bank holding company has the same meaning as in § 225.2(c) of the Board's Regulation Y (12 CFR 225.2(c)).
$250 billion.
bank holding company, savings and loan holding company, orBaseline scenario means a set of conditions that affect the U.S. economy or the financial condition of a
(g)state member bank, and that reflect the consensus views of the economic and financial outlook.
§ 225.8(c)(2) of the Board's Regulation Y (c(2Capital action has the same meaning as in
))
(h).
Covered company subsidiary means a state member bank that is a subsidiary of a covered company as defined in subpart F of this part.
(i) Depository institution has the same meaning as in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813(c)).
(k)(j) Foreign banking organization has the same meaning as in § 211.21(o) of the Board's Regulation K (12 CFR 211.21(o)).
(l)Planning horizon means the period of at least nine consecutive quarters, beginning on the first day of a stress test cycle over which the relevant projections extend.
(m)Pre-provision net revenue means the sum of net interest income and non-interest income less expenses before adjusting for loss provisions.
Until December 31, 2019: (i)Provision for credit losses means:
(1)
bank holding company, savings and loan holding company, orWith respect to a
notstate member bank that has
U.S. generally accepted accounting principles (adopted the current expected credit losses methodology under
)GAAP
loan and lease losses as reported on the FR Y-9C (and as would be reported on the FR Y-9C or Call Report, as appropriate, in the current stress test cycle); and, (ii) With respect to a bank holding company, savings and loan holding company, or state member bank that has adopted the current expected, the provision for
methodology under GAAPcredit losses
the provision for loan and lease losses,,
calculated andas would be
on the FR Y-9C or Call Report, as appropriate,reported
a bank holding company, savings and loan holding company, or state member bank that has not adoptedby
current expected credit losses methodology under GAAP; andthe
(2) Beginning January 1, 2020:
(i) With respect to a covered company that has adopted the current expected credit losses methodology under GAAP, the provision for credit losses, as would be reported by the bank holding company, savings and loan holding company, orFR Y-9C orstate member bank on the
, as appropriate,Call Report
iiin the current stress test cycle; and
(
bank holding company, savings and loan holding company, or2) With respect to a
bank holding company, savings and loan holding company, orstate member bank that has not adopted the current expected credit losses methodology under GAAP, the provision for loan and lease losses as would be reported by the
FR Y-9C orstate member bank on the
, as appropriate,Call Report
(n)in the current stress test cycle.
companyRegulatory capital ratio means a capital ratio for which the Board has established minimum requirements for the
a company's tier 1 and supplementary leverage ratio as calculated under 12 CFR part 217state member bank by regulation or order, including
including the deductions required under 12 CFR 248.12,,
andas applicable,
companythe
common equity tier 1, tier 1, and total risk-basedstate member bank's
asregulatory capital ratios
, includingcalculated under 12 CFR part 217
and the transition provisions at 12 CFR 217.1(f)(4) and 217.300and the deductions required under 12 CFR 248.12
company; except that the
state member bank shall not use the advanced approaches to calculate its regulatory capital ratios.
(p)(o) Savings and loan holding company has the same meaning as in § 238.2(m) of the Board's Regulation LL (12 CFR 238.2(m)).
bank holding company, savings and loan holding company, orScenarios are those sets of conditions that affect the U.S. economy or the financial condition of a
annuallystate member bank that the Board
,determines are appropriate for use in the company-run stress tests, including, but not limited to
, adverse,baseline
(q)and severely adverse scenarios.
bank holding company, savings and loan holding company, orSeverely adverse scenario means a set of conditions that affect the U.S. economy or the financial condition of a
adversestate member bank and that overall are significantly more severe than those associated with the
baseline scenario and may include trading or other additional components.
(s)(r) State member bank has the same meaning as in § 208.2(g) of the Board's Regulation H (12 CFR 208.2(g)).
bank holding company, savings and loan holding company, orStress test means a process to assess the potential impact of scenarios on the consolidated earnings, losses, and capital of a
(t)state member bank over the planning horizon, taking into account the current condition, risks, exposures, strategies, and activities.
: (1) Until September 30, 2015,Stress test cycle means
October 1 of a calendar year and ending on September 30 of the following calendar year, and (2) Beginning October 1, 2015, the period beginning onthe period beginning on
(u)January 1 of a calendar year and ending on December 31 of that year.
§ 225.2(o) the Board's Regulation Y ()Subsidiary has the same meaning as in
.
[Reg. YY, 79 FR 64045, Oct. 27, 2014, as amended at 80 FR 75425, Dec. 2, 2015; 84 FR 424559100, FebNov. 141, 2019]