US Banking Law - Capital Requirements
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.
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.
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