12 CFR 50.109 – Rules for consolidation
(a) Consolidated subsidiary available stable funding amount. For available stable funding of a legal entity that is a consolidated subsidiary of a national bank or Federal savings association, including a consolidated subsidiary organized under the laws of a foreign jurisdiction, the national bank or Federal savings association may include the available stable funding of the consolidated subsidiary in its ASF amount up to:
Terms Used In 12 CFR 50.109
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- National Bank: A bank that is subject to the supervision of the Comptroller of the Currency. The Office of the Comptroller of the Currency is a bureau of the U.S. Treasury Department. A national bank can be recognized because it must have "national" or "national association" in its name. Source: OCC
(1) The RSF amount of the consolidated subsidiary, as calculated by the national bank or Federal savings association for the national bank’s or Federal savings association’s net stable funding ratio under this part; plus
(2) Any amount in excess of the RSF amount of the consolidated subsidiary, as calculated by the national bank or Federal savings association for the national bank’s or Federal savings association’s net stable funding ratio under this part, to the extent the consolidated subsidiary may transfer assets to the top-tier national bank or Federal savings association, taking into account statutory, regulatory, contractual, or supervisory restrictions, such as sections 23A and 23B of the Federal Reserve Act (12 U.S.C. § 371c and 12 U.S.C. §§ 371c–1) and Regulation W (12 CFR part 223).
(b) Required consolidation procedures. To the extent a national bank or Federal savings association includes an ASF amount in excess of the RSF amount of the consolidated subsidiary, the national bank or Federal savings association must implement and maintain written procedures to identify and monitor applicable statutory, regulatory, contractual, supervisory, or other restrictions on transferring assets from any of its consolidated subsidiaries. These procedures must document which types of transactions the national bank or Federal savings association could use to transfer assets from a consolidated subsidiary to the national bank or Federal savings association and how these types of transactions comply with applicable statutory, regulatory, contractual, supervisory, or other restrictions.