# 12 C.F.R. § 206.2 (2026): Definitions

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T12_P206_S206_2

## Section

- **Citation:** 12 C.F.R. § 206.2 (2026)
- **Heading:** Definitions
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 12 CFR: Banks and Banking / Chapter II / Part 206 / § 206.2: § 206.2   Definitions.

## Text

As used in this part, unless the context requires otherwise: (a) Bank means an insured depository institution, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), and includes an insured national bank, state bank, District bank, or savings association, and an insured branch of a foreign bank. (b) Commonly-controlled correspondent means a correspondent that is commonly controlled with the bank and for which the bank is subject to liability under section 5(e) of the Federal Deposit Insurance Act. A correspondent is considered to be commonly controlled with the bank if: (1) 25 percent or more of any class of voting securities of the bank and the correspondent are owned, directly or indirectly, by the same depository institution or company; or (2) Either the bank or the correspondent owns 25 percent or more of any class of voting securities of the other. (c) Correspondent means a U.S. depository institution or a foreign bank, as defined in this part, to which a bank has exposure, but does not include a commonly controlled correspondent. (d) Exposure means the potential that an obligation will not be paid in a timely manner or in full. “Exposure” includes credit and liquidity risks, including operational risks, related to intraday and interday transactions. (e) Foreign bank means an institution that: (1) Is organized under the laws of a country other than the United States; (2) Engages in the business of banking; (3) Is recognized as a bank by the bank supervisory or monetary authorities of the country of the bank's organization; (4) Receives deposits to a substantial extent in the regular course of business; and (5) Has the power to accept demand deposits. (f) Primary federal supervisor has the same meaning as the term “appropriate Federal banking agency” in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813). (g) Total capital means the total of a bank's Tier 1 and Tier 2 capital under the risk-based capital guidelines provided by the bank's primary federal supervisor
course of business; and (5) Has the power to accept demand deposits. (f) Primary federal supervisor has the same meaning as the term “appropriate Federal banking agency” in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813). (g) Total capital means the total of a bank's Tier 1 and Tier 2 capital under the risk-based capital guidelines provided by the bank's primary federal supervisor. For a qualifying community banking organization (as defined in § 217.12 of this chapter) that is subject to the community bank leverage ratio framework (as defined in § 217.12 of this chapter), total capital means the bank's Tier 1 capital (as defined in § 217.2 of this chapter and calculated in accordance with § 217.12(b) of this chapter). For an insured branch of a foreign bank organized under the laws of a country that subscribes to the principles of the Basel Capital Accord, “total capital” means total Tier 1 and Tier 2 capital as calculated under the standards of that country. For an insured branch of a foreign bank organized under the laws of a country that does not subscribe to the principles of the Basel Capital Accord (Accord), “total capital” means total Tier 1 and Tier 2 capital as calculated under the provisions of the Accord. (h) U.S. depository institution means a bank, as defined in § 206.2(a) of this part, other than an insured branch of a foreign bank. [Reg. F, 57 FR 60106, Dec. 18, 1992, as amended at 68 FR 53283, Sept. 10, 2003; 84 FR 61796, Nov. 13, 2019]

## Nearby sections

- [12 C.F.R. § 206.1 (2026) § 206.1   Authority, purpose, and scope.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P206_S206_1.md)
- [12 C.F.R. § 206.2 (2026) § 206.2   Definitions.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P206_S206_2.md)
- [12 C.F.R. § 206.3 (2026) § 206.3   Prudential standards.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P206_S206_3.md)
- [12 C.F.R. § 206.4 (2026) § 206.4   Credit exposure.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P206_S206_4.md)
- [12 C.F.R. § 206.5 (2026) § 206.5   Capital levels of correspondents.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P206_S206_5.md)
- [12 C.F.R. § 206.6 (2026) § 206.6   Waiver.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P206_S206_6.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T12_P206_S206_2. Check the current official text before relying on it. Not legal advice.