[Code of Federal Regulations]
[Title 12, Volume 2]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR206.2]

[Page 193-194]
 
                       TITLE 12--BANKS AND BANKING
 
                   CHAPTER II--FEDERAL RESERVE SYSTEM
 
PART 206--LIMITATIONS ON INTERBANK LIABILITIES (REGULATION F)--Table of Contents
 
Sec. 206.2  Definitions.

    As used in this part, unless the context requires otherwise:
    (a) Bank means an insured depository institution, as defined in 
section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), and 
includes an insured national bank, state bank, District bank, or savings 
association, and an insured branch of a foreign bank.
    (b) Commonly-controlled correspondent means a correspondent that is 
commonly controlled with the bank and for which the bank is subject to 
liability under section 5(e) of the Federal Deposit Insurance Act. A 
correspondent is considered to be commonly controlled with the bank if:
    (1) 25 percent or more of any class of voting securities of the bank 
and the correspondent are owned, directly or indirectly, by the same 
depository institution or company; or
    (2) Either the bank or the correspondent owns 25 percent or more of 
any class of voting securities of the other.
    (c) Correspondent means a U.S. depository institution or a foreign 
bank, as defined in this part, to which a bank has exposure, but does 
not include a commonly controlled correspondent.
    (d) Exposure means the potential that an obligation will not be paid 
in a timely manner or in full. ``Exposure'' includes credit and 
liquidity risks, including operational risks, related to intraday and 
interday transactions.
    (e) Foreign bank means an institution that: (1) Is organized under 
the laws of a country other than the United States;
    (2) Engages in the business of banking;
    (3) Is recognized as a bank by the bank supervisory or monetary 
authorities of the country of the bank's organization;
    (4) Receives deposits to a substantial extent in the regular course 
of business; and
    (5) Has the power to accept demand deposits.
    (f) Primary federal supervisor has the same meaning as the term 
``appropriate Federal banking agency'' in section 3(q) of the Federal 
Deposit Insurance Act (12 U.S.C. 1813(q)).
    (g) Total capital means the total of a bank's Tier 1 and Tier 2 
capital under the risk-based capital guidelines provided by the bank's 
primary federal supervisor. For an insured branch of a foreign bank 
organized under the laws of a country that subscribes to the principles 
of the Basle Capital Accord, ``total capital'' means total Tier 1 and 
Tier 2 capital as calculated under the standards of that country. For an 
insured branch of a foreign bank organized under the laws of a country 
that does not subscribe to the principles of

[[Page 194]]

the Basle Capital Accord, ``total capital'' means total Tier 1 and Tier 
2 capital as calculated under the provisions of the Accord.
    (h) U.S. depository institution means a bank, as defined in 
Sec. 206.2(a) of this part, other than an insured branch of a foreign 
bank.