CFR > Title 12 - Banks and Banking > CHAPTER I—COMPTROLLER OF THE CURRENCY, DEPARTMENT OF THE TREASURY > PART 3—MINIMUM CAPITAL RATIOS; ISSUANCE OF DIRECTIVES > SUBPART C—Establishment of Minimum Capital Ratios for an Individual Bank (§3.9 to §3.13) > 3.11—Standards for determination of appropriate individual minimum capital ratios.

3.11—Standards for determination of appropriate individual minimum capital ratios.

The appropriate minimum capital ratios for an individual bank cannot be determined solely through the application of a rigid mathematical formula or wholly objective criteria. The decision is necessarily based in part on subjective judgment grounded in agency expertise. The factors to be considered in the determination will vary in each case and may include, for example:
(a) The conditions or circumstances leading to the Office's determination that higher minimum capital ratios are appropriate or necessary for the bank;
(b) The exigency of those circumstances or potential problems;
(c) The overall condition, management strength, and future prospects of the bank and, if applicable, its holding company and/or affiliate(s);
(d) The bank's liquidity, capital, risk asset and other ratios compared to the ratios of its peer group; and
(e) The views of the bank's directors and senior management.