Text
Title 12: Banks and Banking
CHAPTER IX: FEDERAL HOUSING FINANCE BOARD
SUBCHAPTER E: FEDERAL HOME LOAN BANK RISK MANAGEMENT AND CAPITAL STANDARDS
PART 932: FEDERAL HOME LOAN BANK CAPITAL REQUIREMENTS
932.6 - Operations risk capital requirement.
(a) General requirement. Except as authorized under paragraph (b) of this section, each Bank's operations risk capital requirement shall at all times equal 30 percent of the sum of the Bank's credit risk capital requirement and market risk capital requirement.
(b) Alternative requirements. With the approval of the Finance Board, each Bank may have an operations risk capital requirement equal to less than 30 percent but no less than 10 percent of the sum of the Bank's credit risk capital requirement and market risk capital requirement if:
(1) The Bank provides an alternative methodology for assessing and quantifying an operations risk capital requirement; or
(2) The Bank obtains insurance to cover operations risk from an insurer rated at least the second highest investment grade credit rating by an NRSRO.
Sponsored links
