§4613 Critical Capital Levels

Summary

Requires each enterprise to hold a "critical capital" amount equal to three parts added together: 1.25 percent of its on‑balance sheet assets as measured under generally accepted accounting principles; 0.25 percent of the unpaid principal of its outstanding mortgage‑backed securities and similar instruments not already counted; and 0.25 percent of other off‑balance‑sheet obligations not already counted, excluding commitments above 50 percent of the average quarterly commitments over the preceding 4 quarters. The Director can change the 0.25 percent for those off‑balance obligations to reflect different credit risk. The Director must set the critical capital for each Federal Home Loan Bank by regulation and must consider the enterprise formula above, with changes the Director thinks fit to reflect how the banks operate differently.