§ 3907. — Capital adequacy.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC3907]
TITLE 12--BANKS AND BANKING
CHAPTER 40--INTERNATIONAL LENDING SUPERVISION
Sec. 3907. Capital adequacy
(a)(1) Each appropriate Federal banking agency shall cause banking
institutions to achieve and maintain adequate capital by establishing
minimum levels of capital for such banking institutions and by using
such other methods as the appropriate Federal banking agency deems
appropriate.
(2) Each appropriate Federal banking agency shall have the authority
to establish such minimum level of capital for a banking institution as
the appropriate Federal banking agency, in its discretion, deems to be
necessary or appropriate in light of the particular circumstances of the
banking institution.
(b)(1) Failure of a banking institution to maintain capital at or
above its minimum level as established pursuant to subsection (a) of
this section may be deemed by the appropriate Federal banking agency, in
its discretion, to constitute an unsafe and unsound practice within the
meaning of section 1818 of this title.
(2)(A) In addition to, or in lieu of, any other action authorized by
law, including paragraph (1), the appropriate Federal banking agency may
issue a directive to a banking institution that fails to maintain
captial \1\ at or above its required level as established pursuant to
subsection (a) of this section.
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\1\ So in original. Probably should be ``capital''.
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(B)(i) Such directive may require the banking institution to submit
and adhere to a plan acceptable to the appropriate Federal banking
agency describing the means and timing by which the banking institution
shall achieve its required capital level.
(ii) Any such directive issued pursuant to this paragraph, including
plans submitted pursuant thereto, shall be enforceable under the
provisions of section 1818(i) of this title to the same extent as an
effective and outstanding order issued pursuant to section 1818(b) of
this title which has become final.
(3)(A) Each appropriate Federal banking agency may consider such
banking institution's progress in adhering to any plan required under
this subsection whenever such banking institution, or an affiliate
thereof, or the holding company which controls such banking institution,
seeks the requisite approval of such appropriate Federal banking agency
for any proposal which would divert earnings, diminish capital, or
otherwise impede such banking institution's progress in achieving its
minimum capital level.
(B) Such appropriate Federal banking agency may deny such approval
where it determines that such proposal would adversely affect the
ability of the banking institution to comply with such plan.
(C) The Chairman of the Board of Governors of the Federal Reserve
System and the Secretary of the Treasury shall encourage governments,
central banks, and regulatory authorities of other major banking
countries to work toward maintaining and, where appropriate,
strengthening the capital bases of banking institutions involved in
international lending.
(Pub. L. 98-181, title IX, Sec. 908, Nov. 30, 1983, 97 Stat. 1280.)
Section Referred to in Other Sections
This section is referred to in sections 1464, 3904 of this title.
