§ 252.12 - Definitions.

§ 252.12 Definitions.

Cross Reference

Link to an amendment published at 84 FR 59100, Nov. 1, 2019.

For purposes of this subpart, the following definitions apply:

(a)

Advanced approaches means the regulatory capital requirements at 12 CFR

part

217, subpart E, as applicable, and any successor regulation.

(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.

(c)

Asset threshold means

: (1) For a bank holding company,

average total consolidated assets of greater than

$10 billion but less than $50 billion, and

(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.

(e) Bank holding company has the same meaning as in § 225.2(c) of the Board's Regulation Y (12 CFR 225.2(c)).

(f)

$250 billion.

Baseline 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, and that reflect the consensus views of the economic and financial outlook.

(g)

Capital action has the same meaning as in

§ 225.8(c)(2) of the Board's Regulation Y (

12 CFR 225.8(

c

d)

(2

)

)

.

(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)).

(j) Foreign banking organization has the same meaning as in § 211.21(o) of the Board's Regulation K (12 CFR 211.21(o)).

(k)

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.

(l)

Pre-provision net revenue means the sum of net interest income and non-interest income less expenses before adjusting for loss provisions.

(m)

Provision for credit losses means:

(1)

Until December 31, 2019: (i)

With respect to a

bank holding company, savings and loan holding company, or

state member bank that has

not

adopted the current expected credit losses methodology under

U.S. generally accepted accounting principles (

GAAP

)

, the provision for

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

credit losses

methodology under GAAP

,

the provision for loan and lease losses,

as would be

calculated and

reported

on the FR Y-9C or Call Report, as appropriate,

by

a bank holding company, savings and loan holding company, or state member bank that has not adopted

the

current expected credit losses methodology under GAAP; and

(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, or

state member bank on the

FR Y-9C or

Call Report

, as appropriate,

in the current stress test cycle; and

(

ii

2) With respect to a

bank holding company, savings and loan holding company, or

state 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

bank holding company, savings and loan holding company, or

state member bank on the

FR Y-9C or

Call Report

, as appropriate,

in the current stress test cycle.

(n)

Regulatory capital ratio means a capital ratio for which the Board has established minimum requirements for the

company

state member bank by regulation or order, including

a company's tier 1 and supplementary leverage ratio as calculated under 12 CFR part 217

,

including the deductions required under 12 CFR 248.12,

as applicable,

and

the

company

state member bank's

common equity tier 1, tier 1, and total risk-based

regulatory capital ratios

as

calculated under 12 CFR part 217

, including

and the deductions required under 12 CFR 248.12

and the transition provisions at 12 CFR 217.1(f)(4) and 217.300

; except that the

company

state member bank shall not use the advanced approaches to calculate its regulatory capital ratios.

(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)).

(p)

Scenarios are those sets 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 the Board

annually

determines are appropriate for use in the company-run stress tests, including, but not limited to

,

baseline

, adverse,

and severely adverse scenarios.

(q)

Severely 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 and that overall are significantly more severe than those associated with the

adverse

baseline scenario and may include trading or other additional components.

(r) State member bank has the same meaning as in § 208.2(g) of the Board's Regulation H (12 CFR 208.2(g)).

(s)

Stress test means a process to assess the potential impact of scenarios on the consolidated earnings, losses, and capital of a

bank holding company, savings and loan holding company, or

state member bank over the planning horizon, taking into account the current condition, risks, exposures, strategies, and activities.

(t)

Stress test cycle means

: (1) Until September 30, 2015,

the period beginning on

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 on

January 1 of a calendar year and ending on December 31 of that year.

(u)

Subsidiary has the same meaning as in

§ 225.2(o) the Board's Regulation Y (

12 CFR 225.2(o)

)

.

[Reg. YY, 79 FR 64045, Oct. 27, 2014, as amended at 80 FR 75425, Dec. 2, 2015; 84 FR 424559100, FebNov. 141, 2019]