1. (a) Maintenance of specific ratio not generally required. Subject to subsection (b) of this section, a foreign bank is not required to maintain a specific ratio of assets to liabilities appearing on the books, accounts and records of its Texas state branch or agency.

2. (b) Authority of banking commissioner to require maintenance of specific ratio. The banking commissioner may require a foreign bank to maintain a specific ratio of assets to liabilities as deemed necessary or desirable. In addition to the factors identified in Finance Code, §204.114(d), the banking commissioner may take into account the following in determining the ratio:

   1. (1) the existence any formal supervisory, regulatory or enforcement actions outstanding against the foreign bank in any jurisdiction or its Texas state branch or Texas state agency;
   2. (2) the composite ROCA rating for the Texas state branch or agency; and
   3. (3) the comprehensive composite ROCA rating of the foreign bank's operations in the United States; and
   4. (4) the financial strength or condition of the foreign bank.
3. (c) Determination of Assets and Liabilities. The banking commissioner will determine the assets and liabilities that may or must be included for purposes satisfying the requirements of this section consistent with Finance Code, §204.114.

Source Note:The provisions of this §3.62 adopted to be effective November 12, 2003, 28 TexReg 9823.