Capital requirements under the Building Block Approach.

CFR · 2024-01-01 · US · Title 12

(a) (1) The company capital requirement of the building block parent; that is: (i) Recalculated under the assumption that members of the building block parent's building block had no investment in any downstream building block parent; and is: (ii) Adjusted pursuant to paragraph (b) of this section; (2) For each downstream building block parent, the adjusted downstream building block capital requirement ( (b) (1) (i) The building block parent's company capital requirement; and (ii) The building block parent's company capital requirement recalculated excluding capital requirements related to potential for the possibility of default of any company in the supervised insurance organization. (2) (i) The building block parent's company capital requirement, after making any adjustment in accordance with paragraph (b)(1) of this section; and (ii) The building block parent's company capital requirement, after making any adjustment in accordance with paragraph (b)(1) of this section, recalculated under the assumption that neither the building block parent, nor any company that is a member of that building block parent's building block, had prepared its financial statements with the application of any permitted accounting practice, prescribed accounting practice, or other practice, including legal, regulatory, or accounting procedures or standards, that departs from a solvency framework as promulgated for application in a jurisdiction. (3) (i) The building block parent's company capital

official document · source cfr-2024 · id 12:§ 217.607