12 CFR § 1229.3 - Criteria for a Bank's capital classification.

---
identifier: "/us/cfr/t12/s1229.3"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 1229.3 - Criteria for a Bank's capital classification."
title_number: 12
title_name: "Banks and Banking"
section_number: "1229.3"
section_name: "Criteria for a Bank's capital classification."
chapter_name: "FEDERAL HOUSING FINANCE AGENCY"
subchapter_number: "B"
subchapter_name: "ENTITY REGULATIONS"
part_number: "1229"
part_name: "CAPITAL CLASSIFICATIONS AND PROMPT CORRECTIVE ACTION"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 1426, 4513, 4526, 4613, 4614, 4615, 4616, 4617, 4618, 4622, 4623."
regulatory_source: "74 FR 5604, Jan. 30, 2009, unless otherwise noted."
cfr_part: "1229"
---


# 1229.3 Criteria for a Bank's capital classification.

(a) *Adequately capitalized.* Except where the Director has exercised authority to reclassify a Bank, a Bank shall be considered adequately capitalized if, at the time of the determination under § 1229.2(a) of this subpart, the Bank has sufficient permanent and total capital, as applicable, to meet or exceed its risk-based and minimum capital requirements.

(b) *Undercapitalized.* Except where the Director has exercised authority to reclassify a Bank, a Bank shall be considered undercapitalized if, at the time of the determination under § 1229.2(a) of this subpart, the Bank does not have sufficient permanent or total capital, as applicable, to meet any one or more of its risk-based or minimum capital requirements but such deficiency is not of a magnitude to classify the Bank as significantly undercapitalized or critically undercapitalized.

(c) *Significantly undercapitalized.* Except where the Director has exercised authority to reclassify a Bank, a Bank shall be considered significantly undercapitalized if, at the time of the determination under § 1229.2(a) of this subpart, the amount of permanent or total capital held by the Bank is less than 75 percent of what is required to meet any one of its risk-based or minimum capital requirements but the magnitude of the Bank's deficiency in total capital is not sufficient to classify it as critically undercapitalized.

(d) *Critically undercapitalized.* Except where the Director has exercised authority to reclassify a Bank, a Bank shall be considered critically undercapitalized if, at the time of the determination under § 1229.2(a) of this subpart, the total capital held by the Bank is less than or equal to the critical capital level for a Bank as defined under § 1229.1 of this subpart.