Total Capital [Banks & Banking] Law and Legal Definition
According to 12 CFR 206.2 [Title 12 -- Banks and Banking; Chapter II -- Federal Reserve System; Subchapter A -- Board of Governors of the Federal Reserve System; Part 206 -- Limitations on Inter-bank Liabilities (Regulation F)], 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 Basel 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 the Basel Capital Accord, "total capital" means total Tier 1 and Tier 2 capital as calculated under the provisions of the Accord.”
