§4808 Revising regulatory requirements for transfers of all types of assets with recourse

Summary

Within 180 days starting on September 23, 1994, federal bank regulators had to review their rules about transfers of assets with recourse by insured banks and, after talking with each other, create new rules that better match the bank’s credit risk from those transfers. After that 180-day period, a bank’s required risk-based capital for assets transferred with recourse cannot be more than the biggest amount the bank is contractually on the hook for under the recourse deal. A regulator can still require more capital if it decides that is needed for safety and soundness. This does not replace a related federal banking rule elsewhere. The terms used mean: "appropriate Federal banking agency" — the federal regulator in charge; "Federal banking agency" — a federal banking regulator; "insured depository institution" — a bank or similar institution insured by the federal deposit insurance.