N.J. Admin. Code § 3:4-1.3

Current through Register Vol. 56, No. 23, December 2, 2024

Section 3:4-1.3 - Minimum leverage capital requirement

(a) The minimum leverage capital for a depository institution shall be a ratio of Tier 1 capital to total assets of four percent.

(b) Notwithstanding (a) above, the Commissioner may establish for a depository institution a minimum ratio of Tier 1 capital total assets of more than four percent based on the following factors:

1. The financial history and condition of a depository institution, and its future earnings prospects;

2. The managerial resources of the depository institution;

3. The funding and liquidity of the depository institution;

4. The interest-rate risk exposure of the depository institution;

5. The concentration of assets of the depository institution; or

6. The volume of assets classified as substandard, doubtful or loss, or subject to special mention.

N.J. Admin. Code § 3:4-1.3

Amended by R.1997 d.380, effective 9/15/1997.
See: 29 N.J.R. 2589(a), 29 N.J.R. 4099(b).
Recodified from N.J.A.C. 3:4-1.2 by R.2008 d.69, effective 4/7/2008.
See: 39 N.J.R. 4983(a), 40 N.J.R. 1826(a).
Former N.J.A.C. 3:4-1.3, Minimum risk-based capital requirement, recodified to N.J.A.C. 3:4-1.4.