12 CFR § 217.123 - Ongoing qualification.

---
identifier: "/us/cfr/t12/s217.123"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 217.123 - Ongoing qualification."
title_number: 12
title_name: "Banks and Banking"
section_number: "217.123"
section_name: "Ongoing qualification."
chapter_name: "FEDERAL RESERVE SYSTEM"
subchapter_number: "A"
subchapter_name: "BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM"
part_number: "217"
part_name: "CAPITAL ADEQUACY OF BANK HOLDING COMPANIES, SAVINGS AND LOAN HOLDING COMPANIES, AND STATE MEMBER BANKS (REGULATION Q)"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 248(a), 321-338a, 481-486, 1462a, 1467a, 1818, 1828, 1831n, 1831o, 1831p-1, 1831w, 1835, 1844(b), 1851, 3904, 3906-3909, 4808, 5365, 5368, 5371, 5371 note, and sec. 4012, Pub. L. 116-136, 134 Stat. 281."
regulatory_source: "Reg. Q, 78 FR 62157, 62285, Oct. 11, 2013, unless otherwise noted."
cfr_part: "217"
---


# 217.123 Ongoing qualification.

(a) *Changes to advanced systems.* A Board-regulated institution must meet all the qualification requirements in § 217.122 on an ongoing basis. A Board-regulated institution must notify the Board when the Board-regulated institution makes any change to an advanced system that would result in a material change in the Board-regulated institution's advanced approaches total risk-weighted asset amount for an exposure type or when the Board-regulated institution makes any significant change to its modeling assumptions.

(b) *Failure to comply with qualification requirements.* (1) If the Board determines that a Board-regulated institution that uses this subpart and that has conducted a satisfactory parallel run fails to comply with the qualification requirements in § 217.122, the Board will notify the Board-regulated institution in writing of the Board-regulated institution's failure to comply.

(2) The Board-regulated institution must establish and submit a plan satisfactory to the Board to return to compliance with the qualification requirements.

(3) In addition, if the Board determines that the Board-regulated institution's advanced approaches total risk-weighted assets are not commensurate with the Board-regulated institution's credit, market, operational, or other risks, the Board may require such a Board-regulated institution to calculate its advanced approaches total risk-weighted assets with any modifications provided by the Board.