[Code of Federal Regulations]
[Title 12 Volume 1]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR3.11]

[Page 16]
 
                       TITLE 12--BANKS AND BANKING
 
   CHAPTER I--COMPTROLLER OF THE CURRENCY, DEPARTMENT OF THE TREASURY
 
PART 3--MINIMUM CAPITAL RATIOS; ISSUANCE OF DIRECTIVES--Table of Contents
 
  Subpart C--Establishment of Minimum Capital Ratios for an Individual 
                                  Bank
 
Sec. 3.11  Standards for determination of appropriate individual minimum capital ratios.

    The appropriate minimum capital ratios for an individual bank cannot 
be determined solely through the application of a rigid mathematical 
formula or wholly objective criteria. The decision is necessarily based 
in part on subjective judgment grounded in agency expertise. The factors 
to be considered in the determination will vary in each case and may 
include, for example:
    (a) The conditions or circumstances leading to the Office's 
determination that higher minimum capital ratios are appropriate or 
necessary for the bank;
    (b) The exigency of those circumstances or potential problems;
    (c) The overall condition, management strength, and future prospects 
of the bank and, if applicable, its holding company and/or affiliate(s);
    (d) The bank's liquidity, capital, risk asset and other ratios 
compared to the ratios of its peer group; and
    (e) The views of the bank's directors and senior management.