Part 324 – Capital Adequacy of FDIC-Supervised Institutions: Rules, Requirements &
Compliance Guide
What Part of Part 324 outlines that the FDIC may require an FDIC-supervised institution to hold
an amount of regulatory capital greater than otherwise required under this part if the FDIC
determines that the FDIC-supervised institution's capital requirements under this part are not
commensurate with the FDIC-supervised institution's credit, market, operational, or other risks?
- correct answer ✔✔324.1(d)(1)
Beginning on ___________, and subject to the transition provisions in subpart G of this part, an
FDIC-supervised institution is subject to limitations on distributions and discretionary bonus
payments with respect to its capital conservation buffer and any applicable countercyclical
capital buffer amount, in accordance with subpart B of this part. - correct answer ✔✔January 1,
2016
An FDIC-supervised institution that changes from one category of FDIC-supervised institution to
another of such categories must comply with the requirements of its category in this part,
including applicable transition provisions of the requirements in this part, no later than? -
correct answer ✔✔on the first day of the second quarter following the change in the FDIC-
supervised institution's category.
What is core capital according to 324? - correct answer ✔✔Tier 1 Capital
True or False: An HVCRE exposure does not include any loan made prior to January 1, 2015. -
correct answer ✔✔True.
What is Tangible Capital according to Part 324? - correct answer ✔✔means the amount of core
capital (Tier 1 capital), as defined in accordance with § 324.2, plus the amount of outstanding
perpetual preferred stock (including related surplus) not included in Tier 1 capital.
, What is Tangible Equity according to Part 324? - correct answer ✔✔means the amount of Tier 1
capital, as calculated in accordance with § 324.2, plus the amount of outstanding perpetual
preferred stock (including related surplus) not included in Tier 1 capital.
What is Total Capital? - correct answer ✔✔The sum of Tier 1 and Tier 2 Capital.
324.4 outlines that any insured depository institution which has less than its minimum leverage
capital requirement is deemed to be..? - correct answer ✔✔engaged in an unsafe or unsound
practice pursuant to section 8(b)(1) and/or 8(c) of the Federal Deposit Insurance Act.
Except? - correct answer ✔✔Except that such an insured depository institution which has
entered into and is in compliance with a written agreement with the FDIC or has submitted to
the FDIC and is in compliance with a plan approved by the FDIC to increase its leverage capital
ratio to such level as the FDIC deems appropriate and to take such other action as may be
necessary for the insured depository institution to be operated so as not to be engaged in such
an unsafe or unsound practice will not be deemed to be engaged in an unsafe or unsound
practice pursuant to section 8(b)(1) and/or 8(c) of the Federal Deposit Insurance Act.
324.4(c) outlines when an institution is deemed to be operating in an unsafe or unsound
condition. What does it state? - correct answer ✔✔Any insured depository institution with a
ratio of tier 1 capital to total assets[10] that is less than two percent is deemed to be operating
in an unsafe or unsound condition pursuant to section 8(a) of the Federal Deposit Insurance Act.
An insured depository institution with a ratio of tier 1 capital to total assets of less than two
percent will not be subject to a proceeding by the FDIC IF? - correct answer ✔✔has entered into
and is in compliance with a written agreement with the FDIC (or any other insured depository
institution with a ratio of tier 1 capital to total assets of less than two percent which has entered
into and is in compliance with a written agreement with its primary Federal regulator and to
which agreement the FDIC is a party) to increase its tier 1 leverage capital ratio to such level as
the FDIC deems appropriate and to take such other action as may be necessary for the insured
depository institution to be operated in a safe and sound manner
Compliance Guide
What Part of Part 324 outlines that the FDIC may require an FDIC-supervised institution to hold
an amount of regulatory capital greater than otherwise required under this part if the FDIC
determines that the FDIC-supervised institution's capital requirements under this part are not
commensurate with the FDIC-supervised institution's credit, market, operational, or other risks?
- correct answer ✔✔324.1(d)(1)
Beginning on ___________, and subject to the transition provisions in subpart G of this part, an
FDIC-supervised institution is subject to limitations on distributions and discretionary bonus
payments with respect to its capital conservation buffer and any applicable countercyclical
capital buffer amount, in accordance with subpart B of this part. - correct answer ✔✔January 1,
2016
An FDIC-supervised institution that changes from one category of FDIC-supervised institution to
another of such categories must comply with the requirements of its category in this part,
including applicable transition provisions of the requirements in this part, no later than? -
correct answer ✔✔on the first day of the second quarter following the change in the FDIC-
supervised institution's category.
What is core capital according to 324? - correct answer ✔✔Tier 1 Capital
True or False: An HVCRE exposure does not include any loan made prior to January 1, 2015. -
correct answer ✔✔True.
What is Tangible Capital according to Part 324? - correct answer ✔✔means the amount of core
capital (Tier 1 capital), as defined in accordance with § 324.2, plus the amount of outstanding
perpetual preferred stock (including related surplus) not included in Tier 1 capital.
, What is Tangible Equity according to Part 324? - correct answer ✔✔means the amount of Tier 1
capital, as calculated in accordance with § 324.2, plus the amount of outstanding perpetual
preferred stock (including related surplus) not included in Tier 1 capital.
What is Total Capital? - correct answer ✔✔The sum of Tier 1 and Tier 2 Capital.
324.4 outlines that any insured depository institution which has less than its minimum leverage
capital requirement is deemed to be..? - correct answer ✔✔engaged in an unsafe or unsound
practice pursuant to section 8(b)(1) and/or 8(c) of the Federal Deposit Insurance Act.
Except? - correct answer ✔✔Except that such an insured depository institution which has
entered into and is in compliance with a written agreement with the FDIC or has submitted to
the FDIC and is in compliance with a plan approved by the FDIC to increase its leverage capital
ratio to such level as the FDIC deems appropriate and to take such other action as may be
necessary for the insured depository institution to be operated so as not to be engaged in such
an unsafe or unsound practice will not be deemed to be engaged in an unsafe or unsound
practice pursuant to section 8(b)(1) and/or 8(c) of the Federal Deposit Insurance Act.
324.4(c) outlines when an institution is deemed to be operating in an unsafe or unsound
condition. What does it state? - correct answer ✔✔Any insured depository institution with a
ratio of tier 1 capital to total assets[10] that is less than two percent is deemed to be operating
in an unsafe or unsound condition pursuant to section 8(a) of the Federal Deposit Insurance Act.
An insured depository institution with a ratio of tier 1 capital to total assets of less than two
percent will not be subject to a proceeding by the FDIC IF? - correct answer ✔✔has entered into
and is in compliance with a written agreement with the FDIC (or any other insured depository
institution with a ratio of tier 1 capital to total assets of less than two percent which has entered
into and is in compliance with a written agreement with its primary Federal regulator and to
which agreement the FDIC is a party) to increase its tier 1 leverage capital ratio to such level as
the FDIC deems appropriate and to take such other action as may be necessary for the insured
depository institution to be operated in a safe and sound manner
