Capital conservation buffer.

CFR · 2024-01-01 · US · Title 12

(a) (2) (i) (A) A reduction of tier 1 capital through the repurchase of a tier 1 capital instrument or by other means, except when a Board-regulated institution, within the same quarter when the repurchase is announced, fully replaces a tier 1 capital instrument it has repurchased by issuing another capital instrument that meets the eligibility criteria for: ( ( (B) A reduction of tier 2 capital through the repurchase, or redemption prior to maturity, of a tier 2 capital instrument or by other means, except when a Board-regulated institution, within the same quarter when the repurchase or redemption is announced, fully replaces a tier 2 capital instrument it has repurchased by issuing another capital instrument that meets the eligibility criteria for a tier 1 or tier 2 capital instrument; (C) A dividend declaration or payment on any tier 1 capital instrument; (D) A dividend declaration or interest payment on any tier 2 capital instrument if the Board-regulated institution has full discretion to permanently or temporarily suspend such payments without triggering an event of default; (E) A discretionary dividend payment on participating insurance policies; or (F) Any similar transaction that the Board determines to be in substance a distribution of capital. (ii) (iii) (iv) (3) C (4) (ii) A top-tier depository institution holding company in a supervised insurance organization and that has a capital conservation buffer that is greater than 150 percent is not subject to a maximum

official document · source cfr-2024 · id 12:§ 217.604