§ 238.10 Categorization of banking organizations.

(a) General. A banking organization with average total consolidated assets of $100 billion or more must determine its category among the three categories described in paragraphs (b) through (d) of this section at least quarterly. (b) Category II. (1) A banking organization is a Category II banking organization if the banking organization has: (i) $700 billion or more in average total consolidated assets; or (ii)(A) $75 billion or more in average cross-jurisdictional activity; and (B) $100 billion or more in average total consolidated assets. (2) After meeting the criteria in paragraph (b)(1) of this section, a banking organization continues to be a Category II banking organization until the banking organization has: (i)(A) Less than $700 billion in total consolidated assets for each of the four most recent calendar quarters; and (B) Less than $75 billion in cross-jurisdictional activity for each of the four most recent calendar quarters; or (ii) Less than $100 billion in total consolidated assets for each of the four most recent calendar quarters. (c) Category III. (1) A banking organization is a Category III banking organization if the banking organization: (i) Has: (A) $250 billion or more in average total consolidated assets; or (B) $100 billion or more in average total consolidated assets and at least: (1) $75 billion in average total nonbank assets; (2) $75 billion in average weighted short-term wholesale funding; or (3) $75 billion in average off-balance sheet exposure; and (ii) Is not a Category II banking organization. (2) After meeting the criteria in paragraph (c)(1) of this section, a banking organization continues to be a Category III banking organization until the banking organization: (i) Has: (A) Less than $250 billion in total consolidated assets for each of the four most recent calendar quarters; (B) Less than $75 billion in total nonbank assets for each of the four most recent calendar quarters; (C) Less than $75 billion in weighted short-term wholesale funding for each of the four most recent calendar quarters; and (D) Less than $75 billion in off-balance sheet exposure for each of the four most recent calendar quarters; or (ii) Has less than $100 billion in total consolidated assets for each of the four most recent calendar quarters; or (iii) Meets the criteria in paragraph (b)(1) of this section to be a Category II banking organization. (d) Category IV. (1) A banking organization with average total consolidated assets of $100 billion or more is a Category IV banking organization if the banking organization: (i) Is not a Category II banking organization; and (ii) Is not a Category III banking organization. (2) After meeting the criteria in paragraph (d)(1) of this section, a banking organization continues to be a Category IV banking organization until the banking organization: (i) Has less than $100 billion in total consolidated assets for each of the four most recent calendar quarters; (ii) Meets the criteria in paragraph (b)(1) of this section to be a Category II banking organization; or (iii) Meets the criteria in paragraph (c)(1) of this section to be a Category III banking organization.