---
kind: "section"
citation: "12 U.S.C. § 4612"
title: "12"
title_heading: "Banks and Banking"
number: "4612"
heading: "Minimum capital levels"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/4612"
units:
  - "Chapter 46 — Government Sponsored Enterprises"
  - "Subchapter II — Required Capital Levels for Regulated Entities, Special Enforcement Powers, and Reviews of Assets and Liabilities"
---

# §4612. Minimum capital levels

- (a) **Enterprises—** For purposes of this subchapter, the minimum capital level for each [enterprise](/usc/12/4502.md?p=10) shall be the sum of—
  - (1) 2.50 percent of the aggregate on-balance sheet assets of the [enterprise](/usc/12/4502.md?p=10), as determined in accordance with generally accepted accounting principles;
  - (2) 0.45 percent of the unpaid principal balance of outstanding [mortgage](/usc/12/1707.md?p=a)-backed securities and substantially equivalent instruments issued or guaranteed by the [enterprise](/usc/12/4502.md?p=10) that are not included in [paragraph (1)](#a-1); and
  - (3) 0.45 percent of other off-balance sheet obligations of the [enterprise](/usc/12/4502.md?p=10) not included in [paragraph (2)](#a-2) (excluding commitments in excess of 50 percent of the average dollar amount of the commitments outstanding each quarter over the preceding 4 quarters), except that the [Director](/usc/12/4502.md?p=9) shall adjust such percentage to reflect differences in the [credit](/usc/12/5481.md?p=7) risk of such obligations in relation to the instruments included in [paragraph (2)](#a-2).
- (b) **Federal Home Loan Banks—** For purposes of this subchapter, the minimum capital level for each Federal Home Loan Bank shall be the minimum capital required to be maintained to comply with the leverage requirement for the bank established under [section 1426(a)(2) of this title](/usc/12/1426.md?p=a-2).
- (c) **Establishment of revised minimum capital levels—** Notwithstanding subsections [(a)](#a) and [(b)](#b) and notwithstanding the capital classifications of the [regulated entities](/usc/12/4502.md?p=20), the [Director](/usc/12/4502.md?p=9) may, by regulations issued under [section 4526 of this title](/usc/12/4526.md), establish a minimum capital level for the [enterprises](/usc/12/4502.md?p=10), for the Federal Home Loan Banks, or for both the [enterprises](/usc/12/4502.md?p=10) and the banks, that is higher than the level specified in [subsection (a)](#a) for the [enterprises](/usc/12/4502.md?p=10) or the level specified in [subsection (b)](#b) for the Federal Home Loan Banks, to the extent needed to ensure that the [regulated entities](/usc/12/4502.md?p=20) operate in a safe and sound manner.
- (d) **Authority to require temporary increase—**
  - (1) **In general—** Notwithstanding subsections [(a)](#a) and [(b)](#b) and any minimum capital level established pursuant to [subsection (c)](#c), the [Director](/usc/12/4502.md?p=9) may, by order, increase the minimum capital level for a [regulated entity](/usc/12/4502.md?p=20) on a temporary basis, when the [Director](/usc/12/4502.md?p=9) determines that such an increase is necessary and consistent with the prudential regulation and the safe and sound operations of a [regulated entity](/usc/12/4502.md?p=20).
  - (2) **Rescission—** The [Director](/usc/12/4502.md?p=9) shall rescind any temporary minimum capital level established under [paragraph (1)](#d-1) when the [Director](/usc/12/4502.md?p=9) determines that the circumstances or facts no longer justify the temporary minimum capital level.
  - (3) **Regulations required—** The [Director](/usc/12/4502.md?p=9) shall issue regulations establishing—
    - (A) standards for the imposition of a temporary increase in minimum capital under [paragraph (1)](#d-1);
    - (B) the standards and procedures that the [Director](/usc/12/4502.md?p=9) will use to make the determination referred to in [paragraph (2)](#d-2); and
    - (C) a reasonable time frame for periodic review of any temporary increase in minimum capital for the purpose of making the determination referred to in [paragraph (2)](#d-2).
- (e) **Authority to establish additional capital and reserve requirements for particular purposes—** The [Director](/usc/12/4502.md?p=9) may, at any time by order or regulation, establish such capital or reserve requirements with respect to any product or activity of a [regulated entity](/usc/12/4502.md?p=20), as the [Director](/usc/12/4502.md?p=9) considers appropriate to ensure that the [regulated entity](/usc/12/4502.md?p=20) operates in a safe and sound manner, with sufficient capital and reserves to support the risks that arise in the operations and management of the [regulated entity](/usc/12/4502.md?p=20).
- (f) **Periodic review—** The [Director](/usc/12/4502.md?p=9) shall periodically review the amount of [core capital](/usc/12/4502.md?p=7) maintained by the [enterprises](/usc/12/4502.md?p=10), the amount of capital retained by the Federal Home Loan Banks, and the minimum capital levels established for such [regulated entities](/usc/12/4502.md?p=20) pursuant to this section.

## Source credit

(Pub. L. 102–550, title XIII, § 1362, Oct. 28, 1992, 106 Stat. 3975; Pub. L. 110–289, div. A, title I, § 1111, July 30, 2008, 122 Stat. 2676.)

## Notes

### Editorial Notes

### Amendments

2008—Subsec. (a). Pub. L. 110–289, § 1111(1), substituted “Enterprises” for “In general” in heading.

Subsecs. (b) to (f). Pub. L. 110–289, § 1111(2), added subsecs. (b) to (f) and struck out former subsec. (b) which related to minimum capital level during transition period.