Appendix B to Subpart A of Part 327—Conversion of Scorecard Measures into Score

Weighted average CAMELS ratings between 1 and 3.5 are assigned a score between 25 and 100 according to the following equation: where: For certain scorecard measures, a lower ratio implies lower risk and a higher ratio implies higher risk. These measures include: • Concentration measure; • Credit quality measure; • Market risk measure; • Average short-term funding to average total assets ratio; and • Potential losses to total domestic deposits ratio (loss severity measure). For those measures, a value between the minimum and maximum cutoff values is converted linearly to a score between 0 and 100, according to the following formula: For other scorecard measures, a lower value represents higher risk and a higher value represents lower risk. These measures include: • Leverage ratio; • Core earnings to average quarter-end total assets ratio; • Core deposits to total liabilities ratio; and • Balance sheet liquidity ratio. For those measures, a value between the minimum and maximum cutoff values is converted linearly to a score between 0 and 100, according to the following formula: