§ 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.
[84 FR 59077, Nov. 1, 2019]