Well Capitalized Insured Depository Institution Law and Legal Definition
According to 12 CFR 208.77 [Title 12 -- Banks and Banking; Chapter II -- Federal Reserve System; Subchapter A -- Board of Governors of the Federal Reserve System; Part 208 -- Membership of State Banking Institutions in the Federal Reserve System (Regulation H); Subpart G -- Financial Subsidiaries of State Member Banks], an insured depository institution is well capitalized if “it has and maintains at least the capital levels required to be well capitalized under the capital adequacy regulations or guidelines adopted by the institution's appropriate Federal banking agency under section 38 of the Federal Deposit Insurance Act (12 U.S.C. 1831o).”
