(a) Adequacy. A member bank’s capital, as defined in appendix A to this part, shall be at all times adequate in relation to the character and condition of its assets and to its existing and
prospective liabilities and other corporate responsibilities. If at any time, in light of all the circumstances, the bank’s capital appears inadequate in relation to its assets, liabilities, and
responsibilities, the bank shall increase the amount of its capital, within such period as the Board deems reasonable, to an amount which, in the judgment of the Board, shall be adequate.
(b) Standards for evaluating capital adequacy. Standards and guidelines by which the Board evaluates the capital adequacy of member banks include those in appendices A and E to this part
for risk-based capital purposes and appendix B to this part for leverage measurement purposes.
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