Applicability.

§ 3.402 Applicability. The OCC may require higher minimum capital ratios for an individual national bank or Federal savings association in view of its circumstances. For example, higher capital ratios may be appropriate for: (a) A newly chartered national bank or Federal savings association; (b) A national bank or Federal savings association receiving special supervisory attention; (c) A national bank or Federal savings association that has, or is expected to have, losses resulting in capital inadequacy; (d) A national bank or Federal savings association with significant exposure due to the risks from concentrations of credit, certain risks arising from nontraditional activities, or management's overall inability to monitor and control financial and operating risks presented by concentrations of credit and nontraditional activities; (e) A national bank or Federal savings association with significant exposure to declines in the economic value of its capital due to changes in interest rates; (f) A national bank or Federal savings association with significant exposure due to fiduciary or operational risk; (g) A national bank or Federal savings association exposed to a high degree of asset depreciation, or a low level of liquid assets in relation to short term liabilities; (h) A national bank or Federal savings association exposed to a high volume of, or particularly severe, problem loans; (i) A national bank or Federal savings association that is growing rapidly, either internally or through acquisitions; or (j) A national bank or Federal savings association that may be adversely affected by the activities or condition of its holding company, affiliate(s), or other persons or institutions, including chain banking organizations, with which it has significant business relationships.