Funding and Fiscal Affairs, Loan Policies and Operations, and Funding Operations; General Provisions; Disclosure to Shareholders; Capital Adequacy

Résumé

The Farm Credit Administration (FCA), by the FCA Board (Board), proposes amendments to FCA capital regulations for Farm Credit System (Farm Credit or System) institutions to add unallocated surplus and total surplus standards for banks and associations; add a collateral ratio for banks; add procedures for the establishment of individual institution capital standards and for the issuance of capital directives; remove outdated provisions; and make other technical, clarifying, and conforming changes. The regulation would require that each institution maintain at least a minimum level of unallocated surplus and total surplus capital, and that banks maintain at least a minimum collateral ratio. In addition, the regulations would specify procedures for setting higher individual capital standards when warranted by higher risk and issuing capital directives.