# 12 CFR § 206.2: Definitions > Federal · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/ecfr-12-206.2 ## Section - **Citation:** 12 CFR § 206.2 - **Heading:** Definitions - **Jurisdiction:** Federal - **Kind:** Regulations - **Status:** In force - **Text as of:** September 22, 2026 - **Source:** Publisher's official text - **Location:** Title 12—Banks and Banking > CHAPTER II—FEDERAL RESERVE SYSTEM > SUBCHAPTER A—BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM > PART 206—LIMITATIONS ON INTERBANK LIABILITIES (REGULATION F) ## 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. 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 CFR § 201.2 § 201.2 Definitions.](https://www.frixlaw.com/law-library/statutes/ecfr-12-201.2.md) - [12 CFR § 201.4 § 201.4 Availability and terms of credit.](https://www.frixlaw.com/law-library/statutes/ecfr-12-201.4.md) - [12 CFR § 202.3 § 202.3 Limited exceptions for certain classes of transactions.](https://www.frixlaw.com/law-library/statutes/ecfr-12-202.3.md) - [12 CFR § 202.7 § 202.7 Rules concerning extensions of credit.](https://www.frixlaw.com/law-library/statutes/ecfr-12-202.7.md) - [12 CFR § 202.11 § 202.11 Relation to state law.](https://www.frixlaw.com/law-library/statutes/ecfr-12-202.11.md) - [12 CFR § 202.13 § 202.13 Information for monitoring purposes.](https://www.frixlaw.com/law-library/statutes/ecfr-12-202.13.md) - [12 CFR § 204.3 § 204.3 Reporting and location.](https://www.frixlaw.com/law-library/statutes/ecfr-12-204.3.md) - [12 CFR § 204.4 § 204.4 Computation of required reserves.](https://www.frixlaw.com/law-library/statutes/ecfr-12-204.4.md) - [12 CFR § 205.6 § 205.6 Liability of consumer for unauthorized transfers.](https://www.frixlaw.com/law-library/statutes/ecfr-12-205.6.md) - [12 CFR § 205.9 § 205.9 Receipts at electronic terminals; periodic statements.](https://www.frixlaw.com/law-library/statutes/ecfr-12-205.9.md) - [12 CFR § 205.10 § 205.10 Preauthorized transfers.](https://www.frixlaw.com/law-library/statutes/ecfr-12-205.10.md) - [12 CFR § 205.11 § 205.11 Procedures for resolving errors.](https://www.frixlaw.com/law-library/statutes/ecfr-12-205.11.md) - [12 CFR § 205.12 § 205.12 Relation to other laws.](https://www.frixlaw.com/law-library/statutes/ecfr-12-205.12.md) - [12 CFR § 205.17 § 205.17 Requirements for overdraft services.](https://www.frixlaw.com/law-library/statutes/ecfr-12-205.17.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-12-206.2. 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