§ 217.404. Method 1 score.

255 words·~1 min read·/us/cfr/t12/s§ 217.404·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)General. A bank holding company's method 1 score is the sum of its systemic indicator scores for the twelve systemic indicators set forth Table 1 of this section, as determined under paragraph

(b)of this section.

(b)Systemic indicator score.

(1)Except as provided in paragraph (b)(2) of this section, the systemic indicator score in basis points for a given systemic indicator is equal to:

(i)The ratio of:

(A)The amount of that systemic indicator, as reported by the bank holding company as of December 31 of the previous calendar year; to

(B)The aggregate global indicator amount for that systemic indicator published by the Board in the fourth quarter of that year;

(ii)Multiplied by 10,000; and

(iii)Multiplied by the indicator weight corresponding to the systemic indicator as set forth in Table 1 of this section.

(2)Maximum substitutability score. The sum of the systemic indicator scores for the indicators in the substitutability category (assets under custody, payments systems activity, and underwriting activity) will not exceed 100 basis points. Table 1 to § 217.404—Systemic Indicator Weights Category Systemic indicator Indicator weight SizeTotal exposures20 percent. InterconnectednessIntra-financial system assets6.67 percent. Intra-financial system liabilities6.67 percent. Securities outstanding6.67 percent. SubstitutabilityPayments activity6.67 percent. Assets under custody6.67 percent. Underwritten transactions in debt and equity markets6.67 percent. ComplexityNotional amount of over-the-counter

(OTC)derivatives6.67 percent. Trading and available-for-sale

(AFS)securities6.67 percent. Level 3 assets6.67 percent. Cross-jurisdictional activityCross-jurisdictional claims10 percent. Cross-jurisdictional liabilities10 percent. [Reg. Q, 80 FR 49105, Aug. 14, 2015, as amended at 81 FR 90954, Dec. 16, 2016]

Connections20 cite this

Cited by 20 sections · top 18

Citation graph

cites case law

§ 217.404

Method 1 score.

Fed. Reg.×20

Cites 0Cited by 20 across 1 source