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12 CFR § 217.405 - Method 2 score.

---
identifier: "/us/cfr/t12/s217.405"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 217.405 - Method 2 score."
title_number: 12
title_name: "Banks and Banking"
section_number: "217.405"
section_name: "Method 2 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"
---

# 217.405 Method 2 score.

(a) *General.* A global systemically important BHC's method 2 score is equal to:

(1) The sum of:

(i) The global systemically important BHC's systemic indicator scores for the nine systemic indicators set forth Table 1 of this section, as determined under paragraph (b) of this section; and

(ii) The global systemically important BHC's short-term wholesale funding score, calculated pursuant to § 217.406.

(b) *Systemic indicator score.* A global systemically important BHC's score for a systemic indicator is equal to:

(1) The amount of the systemic indicator, as reported by the bank holding company as of December 31 of the previous calendar year, expressed in billions of dollars;

(2) Multiplied by the coefficient corresponding to the systemic indicator set forth in Table 1 of this section.

Table 1 to § 217.405—Coefficients for Systemic Indicators

| Category | Systemic indicator | Coefficient value(%) |
| --- | --- | --- |
| Size | Total exposures | 4.423 |
| Interconnectedness | Intra-financial system assets | 12.007 |
|  | Intra-financial system liabilities | 12.490 |
|  | Securities outstanding | 9.056 |
| Complexity | Notional amount of over-the-counter (OTC) derivatives | 0.155 |
|  | Trading and available-for-sale (AFS) securities | 30.169 |
|  | Level 3 assets | 161.177 |
| Cross-jurisdictional activity | Cross-jurisdictional claims | 9.277 |
|  | Cross-jurisdictional liabilities | 9.926 |

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