§4613 Critical Capital Levels

Summary

It sets a required "critical capital level" for each enterprise by adding three parts: 1.25% of its on‑balance‑sheet assets (as reported under generally accepted accounting principles); 0.25% of the unpaid principal on mortgage‑backed securities and similar instruments not counted in the first part; and 0.25% of other off‑balance‑sheet obligations not counted in the second part, excluding commitments above 50% of the average quarterly commitments over the prior four quarters. The Director may change the third percentage to reflect differences in credit risk. For each Federal Home Loan Bank, the Director must set the critical capital level by rule. The Director must consider the enterprise formula above and modify it as needed to reflect how the banks operate differently.