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12 CFR § 217.404 - Method 1 score.

---
identifier: "/us/cfr/t12/s217.404"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 217.404 - Method 1 score."
title_number: 12
title_name: "Banks and Banking"
section_number: "217.404"
section_name: "Method 1 score."
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"
---

# 217.404 Method 1 score.

(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 |
| --- | --- | --- |
| Size | Total exposures | 20 percent. |
| Interconnectedness | Intra-financial system assets | 6.67 percent. |
|  | Intra-financial system liabilities | 6.67 percent. |
|  | Securities outstanding | 6.67 percent. |
| Substitutability | Payments activity | 6.67 percent. |
|  | Assets under custody | 6.67 percent. |
|  | Underwritten transactions in debt and equity markets | 6.67 percent. |
| Complexity | Notional amount of over-the-counter (OTC) derivatives | 6.67 percent. |
|  | Trading and available-for-sale (AFS) securities | 6.67 percent. |
|  | Level 3 assets | 6.67 percent. |
| Cross-jurisdictional activity | Cross-jurisdictional claims | 10 percent. |
|  | Cross-jurisdictional liabilities | 10 percent. |

[Reg. Q, 80 FR 49105, Aug. 14, 2015, as amended at 81 FR 90954, Dec. 16, 2016]