{"data":{"id":"us/12-cfr-217.404","jurisdiction":"us","citation":"12 CFR 217.404","heading":"Method 1 score.","body":"(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.\n(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:\n(i) The ratio of:\n(A) The amount of that systemic indicator, as reported by the bank holding company as of December 31 of the previous calendar year; to\n(B) The aggregate global indicator amount for that systemic indicator published by the Board in the fourth quarter of that year;\n(ii) Multiplied by 10,000; and\n(iii) Multiplied by the indicator weight corresponding to the systemic indicator as set forth in Table 1 of this section.\n(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.\nTable 1 to § 217.404—Systemic Indicator Weights\nCategory Systemic indicator Indicator weight\nSize Total exposures 20 percent.\nInterconnectedness Intra-financial system assets 6.67 percent.\nIntra-financial system liabilities 6.67 percent.\nSecurities outstanding 6.67 percent.\nSubstitutability Payments activity 6.67 percent.\nAssets under custody 6.67 percent.\nUnderwritten transactions in debt and equity markets 6.67 percent.\nComplexity Notional amount of over-the-counter (OTC) derivatives 6.67 percent.\nTrading and available-for-sale (AFS) securities 6.67 percent.\nLevel 3 assets 6.67 percent.\nCross-jurisdictional activity Cross-jurisdictional claims 10 percent.\nCross-jurisdictional liabilities 10 percent.","path":["Title 12—Banks and Banking","CHAPTER II—FEDERAL RESERVE SYSTEM","SUBCHAPTER A—BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM","PART 217—CAPITAL ADEQUACY OF BANK HOLDING COMPANIES, SAVINGS AND LOAN HOLDING COMPANIES, AND STATE MEMBER BANKS (REGULATION Q)","Subpart H—Risk-based Capital Surcharge for Global Systemically Important Bank Holding Companies"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-12.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:16Z","sha256":"76753f2ff25cd75d3ab1e0d83ac09a9e552ad70c97edc076e4b456ee5b1ed7a5","source_id":"us-cfr","stale":true,"prev":"us/12-cfr-217.403","next":"us/12-cfr-217.405"},"notice":"GroundRules: Original legal text. Not legal advice."}