Significantly undercapitalized definition

Significantly undercapitalized means a net worth to total

Significantly undercapitalized means a net worth to total assets ratio of less than four percent.

Significantly undercapitalized means, with respect to a public

Examples of Significantly undercapitalized in a sentence

• Significantly undercapitalized if it fails to maintain the eligible assets prescribed under § 347.210 of this chap- ter at 104 percent or more of the pre- ceding quarter’s average book value of the insured branch’s third-party liabil- ities.

• Significantly undercapitalized characterizes depository institutions with capital levels significantly below the minimum requirements for any relevant capital measure.

• Except where the Director has exercised authority to re- classify a Bank, a Bank shall be consid- ered undercapitalized if, at the time of the determination under § 1229.2(a) of this subpart, the Bank does not have sufficient permanent or total capital, as applicable, to meet any one or more of its risk-based or minimum capital requirements but such deficiency is not of a magnitude to classify the Bank as significantly undercapitalized or criti- cally undercapitalized.(c) Significantly undercapitalized.

• Except where theDirector has exercised authority to re- classify a Bank, a Bank shall be consid- ered undercapitalized if, at the time of the determination under § 1229.2(a) of this subpart, the Bank does not have sufficient permanent or total capital, as applicable, to meet any one or more of its risk-based or minimum capital requirements but such deficiency is not of a magnitude to classify the Bank as significantly undercapitalized or criti- cally undercapitalized.(c) Significantly undercapitalized.

• Significantly undercapitalized depository institutions may be subject to a number of other requirements and restrictions, including orders to sell sufficient voting stock to become adequately capitalized, requirements to reduce total assets and cessation of receipt of deposits from correspondent banks.

More Definitions of Significantly undercapitalized

Significantly undercapitalized means, with respect to a public depository, "significantly undercapitalized" as the term is defined in subsection (b) of section 38 of the "Federal Deposit Insurance Act," Pub.L.81-797 (12 U.S.C. s.1831o(b)), or subsection (c) of section 216 of title II of the "Federal Credit Union Act," Pub.L.73-467 (12 U.S.C. s.1790d(c)), as applicable, and their implementing regulations;

Significantly undercapitalized means a net worth

Significantly undercapitalized means a net worth to

Significantly undercapitalized or "critically undercapitalized" as those terms are defined by the Federal Reserve or the Bank's primary federal regulator.

Significantly undercapitalized banks are subject to broad regulatory authority, including among other things, capital directives, forced mergers, restrictions on the rates of interest they may pay on deposits, restrictions on asset growth and activities, and prohibitions on paying certain bonuses without FDIC approval. Even more severe restrictions apply to critically undercapitalized banks. Most importantly, except under limited circumstances, not later than 90 days after an insured bank becomes critically undercapitalized, the appropriate federal banking agency is required to appoint a conservator or receiver for the bank. In addition to measures taken under the prompt corrective action provisions, insured banks may be subject to potential actions by the federal regulators for unsafe or unsound practices in conducting their businesses or for violations of any law, rule, regulation or any condition imposed in writing by the agency or any written agreement with the agency. Enforcement actions may include the issuance of cease and desist orders, termination of insurance of deposits (in the case of a bank), the imposition of civil money penalties, the issuance of directives to increase capital, formal and informal agreements, or removal and prohibition orders against "institution-affiliated" parties. SAFETY AND SOUNDNESS STANDARDS The federal banking agencies have adopted final guidelines establishing safety and soundness standards for all insured depository institutions. Those guidelines relate to internal controls, information systems, internal audit systems, loan underwriting and documentation, compensation and interest rate exposure. In general, the standards are designed to assist the federal banking agencies in identifying and addressing problems at insured depository institutions before capital becomes impaired. If an institution fails to meet these standards, the appropriate federal banking agency may require the institution to submit a compliance plan and institute enforcement proceedings if an acceptable compliance plan is not submitted. PREMIUMS FOR DEPOSIT INSURANCE The FDIC has adopted final regulations implementing a risk-based premium system, whereby insured depository institutions are required to pay insurance premiums depending on their risk classification. Under this system, institutions such as the Bank which are insured by the Bank Insurance Fund ("BIF"), are categorized into one of three capital categories (well capitalized, adequately capitalized, and undercapitalize...

Significantly undercapitalized or "critically undercapitalized" institution pursuant to 12 U.S.C. 1831o, a notice identifying such designation and describing in reasonable detail the computations necessary to determine such designation;

Significantly undercapitalized means, one whose core capital does not exceed eight per cent of its total risk adjusted assets, of such other percentage as may from time to time, be determined by Bank of South Sudan.