12 CFR 211.43 - Allocated transfer risk reserve.

§ 211.43 Allocated transfer risk reserve.

(a)Establishment of Allocated Transfer Risk Reserve. A banking institution shall establish an allocated transfer risk reserve (ATRR) for specified international assets when required by the Board in accordance with this section.

(b)Procedures and standards -

(1)Joint agency determination. At least annually, the Federal banking agencies shall determine jointly, based on the standards set forth in paragraph (b)(2) of this section, the following:

(i) Which international assets subject to transfer risk warrant establishment of an ATRR;

(ii) The amount of the ATRR for the specified assets; and

(iii) Whether an ATRR established for specified assets may be reduced.

(2)Standards for requiring ATRR -

(i)Evaluation of assets. The Federal banking agencies shall apply the following criteria in determining whether an ATRR is required for particular international assets:

(A) Whether the quality of a banking institution's assets has been impaired by a protracted inability of public or private obligors in a foreign country to make payments on their external indebtedness as indicated by such factors, among others, as whether:

(1) Such obligors have failed to make full interest payments on external indebtedness; or

(2) Such obligors have failed to comply with the terms of any restructured indebtedness; or

(3) A foreign country has failed to comply with any International Monetary Fund or other suitable adjustment program; or

(B) Whether no definite prospects exist for the orderly restoration of debt service.

(ii)Determination of amount of ATRR.

(A) In determining the amount of the ATRR, the Federal banking agencies shall consider:

(1) The length of time the quality of the asset has been impaired;

(2) Recent actions taken to restore debt service capability;

(3) Prospects for restored asset quality; and

(4) Such other factors as the Federal banking agencies may consider relevant to the quality of the asset.

(B) The initial year's provision for the ATRR shall be ten percent of the principal amount of each specified international asset, or such greater or lesser percentage determined by the Federal banking agencies. Additional provision, if any, for the ATRR in subsequent years shall be fifteen percent of the principal amount of each specified international asset, or such greater or lesser percentage determined by the Federal banking agencies.

(3)Board notification. Based on the joint agency determinations under paragraph (b)(1) of this section, the Board shall notify each banking institution holding assets subject to an ATRR:

(i) Of the amount of the ATRR to be established by the institution for specified international assets; and

(ii) That an ATRR established for specified assets may be reduced.

(c)Accounting treatment of ATRR -

(1)Charge to current income. A banking institution shall establish an ATRR by a charge to current income and the amounts so charged shall not be included in the banking institution's capital or surplus.

(2)Separate accounting. A banking institution shall account for an ATRR separately from the Allowance for Loan and Lease Losses, and shall deduct the ATRR from “gross loans and leases” to arrive at “net loans and leases.” The ATRR must be established for each asset subject to the ATRR in the percentage amount specified.

(3)Consolidation. A banking institution shall establish an ATRR, as required, on a consolidated basis. For banks, consolidation should be in accordance with the procedures and tests of significance set forth in the instructions for preparation of Consolidated Reports of Condition and Income (FFIEC 031 and 041). For bank holding companies, the consolidation shall be in accordance with the principles set forth in the “Instructions to Consolidated Financial Statements for Bank Holding Companies” (Form F.R. Y-9C). Edge and Agreement corporations engaged in banking shall report in accordance with instructions for preparation of the Report of Condition for Edge and Agreement Corporations (Form F.R. 2886b).

(4)Alternative accounting treatment. A banking institution need not establish an ATRR if it writes down in the period in which the ATRR is required, or has written down in prior periods, the value of the specified international assets in the requisite amount for each such asset. For purposes of this paragraph, international assets may be written down by a charge to the Allowance for Loan and Lease Losses or a reduction in the principal amount of the asset by application of interest payments or other collections on the asset; provided, that only those international assets that may be charged to the Allowance for Loan and Lease Losses pursuant to generally accepted accounting principles may be written down by a charge to the Allowance for Loan and Lease Losses. However, the Allowance for Loan and Lease Losses must be replenished in such amount necessary to restore it to a level which adequately provides for the estimated losses inherent in the banking institution's loan portfolio.

(5)Reduction of ATRR. A banking institution may reduce an ATRR when notified by the Board or, at any time, by writing down such amount of the international asset for which the ATRR was established.

[Reg. K, 68 FR 1159, Jan. 9, 2003]

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.

United States Code
U.S. Code: Title 12 - BANKS AND BANKING

§ 221 - Definitions

§ 221a - Additional definitions

§ 222 - Federal reserve districts; membership of national banks

§ 223 - Number of Federal reserve cities in district

§ 224 - Status of reserve cities under former statutes

§ 225 - Federal reserve banks; title

§ 225a - Maintenance of long run growth of monetary and credit aggregates

§ 225b - Appearances before and reports to the Congress

§ 226 - “Federal Reserve Act”

§ 227 - “Banking Act of 1933”

§ 228 - “Banking Act of 1935”

§ 1818 - Termination of status as insured depository institution

§ 1835a - Prohibition against deposit production offices

§ 1841 - Definitions

§ 1842 - Acquisition of bank shares or assets

§ 1843 - Interests in nonbanking organizations

§ 1844 - Administration

§ 1845 - Repealed. Pub. L. 89–485, § 9, July 1, 1966, 80 Stat. 240

§ 1846 - Reservation of rights to States

§ 1847 - Penalties

§ 1848 - Judicial review

§ 1848a - Repealed. Pub. L. 111–203, title VI, § 604(c)(2), July 21, 2010, 124 Stat. 1601

§ 1849 - Saving provision

§ 1850 - Acquisition of subsidiary and tying arrangement: Federal Reserve Board proceedings; application for authorization; competitor as party in interest and person aggrieved; judicial review

§ 1850a - Securities holding companies

§ 1851 - Prohibitions on proprietary trading and certain relationships with hedge funds and private equity funds

§ 1852 - Concentration limits on large financial firms

§ 3101 - Definitions

§ 3102 - Establishment of Federal branches and agencies by foreign bank

§ 3103 - Interstate banking by foreign banks

§ 3104 - Insurance of deposits

§ 3105 - Authority of Federal Reserve System

§ 3106 - Nonbanking activities of foreign banks

§ 3106a - Compliance with State and Federal laws

§ 3107 - Representative offices

§ 3108 - Regulation and enforcement

§ 3109 - Cooperation with foreign supervisors

§ 3110 - Penalties

§ 3111 - Criminal penalty

§ 3901 - Congressional declaration of policy

§ 3902 - Definitions

§ 3903 - Strengthened supervision of international lending

§ 3904 - Reserves

§ 3904a - Additional reserve requirements

§ 3905 - Accounting for fees on international loans

§ 3906 - Collection and disclosure of international lending data

§ 3907 - Capital adequacy

§ 3908 - Foreign loan evaluations

§ 3909 - General authorities

§ 3910 - Audit authority of Government Accountability Office

§ 3911 - Equal representation for Federal Deposit Insurance Corporation and the Office of Thrift Supervision

§ 3912 - Repealed. Pub. L. 104–208, div. A, title II, § 2224(c), Sept. 30, 1996, 110 Stat. 3009–415

§ 5101 - Purposes and methods for establishing a mortgage licensing system and registry

§ 5102 - Definitions

§ 5103 - License or registration required

§ 5104 - State license and registration application and issuance

§ 5105 - Standards for State license renewal

§ 5106 - System of registration administration by Federal agencies

§ 5107 - Bureau of Consumer Financial Protection backup authority to establish loan originator licensing system

§ 5108 - Backup authority to establish a nationwide mortgage licensing and registry system

§ 5109 - Fees

§ 5110 - Background checks of loan originators

§ 5111 - Confidentiality of information

§ 5112 - Liability provisions

§ 5113 - Enforcement by the Bureau

§ 5114 - State examination authority

§ 5115 - Reports and recommendations to Congress

§ 5116 - Study and reports on defaults and foreclosures

U.S. Code: Title 15 - COMMERCE AND TRADE

Title 12 published on 09-Jun-2018 03:57

The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 12 CFR Part 211 after this date.

  • 2018-05-14; vol. 83 # 93 - Monday, May 14, 2018
    1. 83 FR 22312 - Regulatory Capital Rules: Implementation and Transition of the Current Expected Credit Losses Methodology for Allowances and Related Adjustments to the Regulatory Capital Rules and Conforming Amendments to Other Regulations
      GPO FDSys XML | Text
      Notice of proposed rulemaking.
      Comments must be received by July 13, 2018.
      12 CFR Parts 1, 3, 5, 23, 24, 32, 34, and 46
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