---
kind: "section"
citation: "12 C.F.R. § 1229.3"
title: "12"
number: "1229.3"
heading: "Criteria for a Bank's capital classification."
url: "https://uscodex.org/cfr/12/1229.3"
---

# §1229.3. Criteria for a Bank's capital classification.

- (a) **Adequately capitalized.** Except where the Director has exercised authority to reclassify a Bank, a Bank shall be considered adequately capitalized if, at the time of the determination under [§ 1229.2(a)](/cfr/12/1229.2.md?p=a) of this subpart, the Bank has sufficient permanent and total capital, as applicable, to meet or exceed its risk-based and minimum capital requirements.
- (b) **Undercapitalized.** Except where the Director has exercised authority to reclassify a Bank, a Bank shall be considered undercapitalized if, at the time of the determination under [§ 1229.2(a)](/cfr/12/1229.2.md?p=a) of this subpart, the Bank does not have sufficient permanent or total capital, as applicable, to meet any one or more of its risk-based or minimum capital requirements but such deficiency is not of a magnitude to classify the Bank as significantly undercapitalized or critically undercapitalized.
- (c) **Significantly undercapitalized.** Except where the Director has exercised authority to reclassify a Bank, a Bank shall be considered significantly undercapitalized if, at the time of the determination under [§ 1229.2(a)](/cfr/12/1229.2.md?p=a) of this subpart, the amount of permanent or total capital held by the Bank is less than 75 percent of what is required to meet any one of its risk-based or minimum capital requirements but the magnitude of the Bank's deficiency in total capital is not sufficient to classify it as critically undercapitalized.
- (d) **Critically undercapitalized.** Except where the Director has exercised authority to reclassify a Bank, a Bank shall be considered critically undercapitalized if, at the time of the determination under [§ 1229.2(a)](/cfr/12/1229.2.md?p=a) of this subpart, the total capital held by the Bank is less than or equal to the critical capital level for a Bank as defined under [§ 1229.1](/cfr/12/1229.1.md) of this subpart.

## Notes

### Authority

Authority: 12 U.S.C. 1426, 4513, 4526, 4613, 4614, 4615, 4616, 4617, 4618, 4622, 4623.

### Source

Source: 74 FR 5604, Jan. 30, 2009, unless otherwise noted.