Overview
One of the primary regulations for banks is a requirement for the amount of capital that a bank must hold. Capital requirements are a core concern of the Basel Framework, however, the Basel Committee holds no regulatory power over US banks.
In the United States, three regulatory bodies have capital requirements that they impose on banks.
- Office of the Comptroller of the Currency
- The Federal Reserve
- The Federal Deposit Insurance Corporation
Regulators impose minimum capital requirements when a bank is first chartered, and then impose requirements generally consistent with the Basel agreement. Banks that fall below the required capital levels are usually seized by the regulators and put under a conservator.