#### § 217.406 Short-term wholesale funding score.

(a) *General.* Except as provided in [§ 217.400(b)(3)(ii)](/on/2024-09-19/title-12/section-217.400#p-217.400(b)(3)(ii)), a global systemically important BHC's short-term wholesale funding score is equal to:

(1) The average of the global systemically important BHC's weighted short-term wholesale funding amount (defined in [paragraph (b)](/on/2024-09-19/title-12/section-217.406#p-217.406(b)) of this section);

(2) Divided by the global systemically important BHC's average risk-weighted assets; and

(3) Multiplied by a fixed factor of 350.

(b) *Weighted short-term wholesale funding amount.*

(1) To calculate its weighted short-term wholesale funding amount, a global systemically important BHC must calculate the amount of its short-term wholesale funding on a consolidated basis for each business day of the previous calendar year and weight the components of short-term wholesale funding in accordance with Table 1 of this section.

(2) Short-term wholesale funding includes the following components, each as defined in [paragraph (c)](/on/2024-09-19/title-12/section-217.406#p-217.406(c)) of this section:

(i) All funds that the bank holding company must pay under each secured funding transaction, other than an operational deposit, with a remaining maturity of 1 year or less;

(ii) All funds that the bank holding company must pay under all unsecured wholesale funding, other than an operational deposit, with a remaining maturity of 1 year or less;

(iii) The fair value of an asset as determined under GAAP that a bank holding company must return under a covered asset exchange with a remaining maturity of 1 year or less;

(iv) The fair value of an asset as determined under GAAP that the bank holding company must return under a short position to the extent that the borrowed asset does not qualify as a Level 1 liquid asset or a Level 2A liquid asset; and

(v) All brokered deposits held at the bank holding company provided by a retail customer or counterparty.

(3) For purposes of calculating the short-term wholesale funding amount and the components thereof, a bank holding company must assume that each asset or transaction described in [paragraph (b)(2)](/on/2024-09-19/title-12/section-217.406#p-217.406(b)(2)) of this section matures in accordance with the criteria set forth in [12 CFR 249.31](/on/2024-09-19/title-12/section-249.31).

Table 1 to [§ 217.406](/on/2024-09-19/title-12/section-217.406)—Short-Term Wholesale Funding Components and Weights

| Component of short-term wholesale funding | Remaining maturity of 30 days of less or no maturity | Remaining maturity of 31 to 90 days | Remaining maturity of 91 to 180 days | Remaining maturity of 181 to 365 days |
| --- | --- | --- | --- | --- |
| *Category 1* | 25 percent | 10 percent | 0 percent | 0 percent. |
| (1) Secured funding transaction secured by a level 1 liquid asset; | | | | |
| (2) Unsecured wholesale funding where the customer or counterparty is not a financial sector entity or a consolidated subsidiary thereof; | | | | |
| (3) Brokered deposits provided by a retail customer or counterparty; and | | | | |
| (4) Short positions where the borrowed asset does not qualify as either a level 1 liquid asset or level 2A liquid asset. | | | | |
| *Category 2* | 50 percent | 25 percent | 10 percent | 0 percent. |
| (1) Secured funding transaction secured by a level 2A liquid asset; and | | | | |
| (2) Covered asset exchanges involving the future exchange of a Level 1 liquid asset for a Level 2A liquid asset. | | | | |
| *Category 3* | 75 percent | 50 percent | 25 percent | 10 percent. |
| (1) Secured funding transaction secured by a level 2B liquid asset; | | | | |
| (2) Covered asset exchanges (other than those described in Category 2); and | | | | |
| (3) Unsecured wholesale funding (other than unsecured wholesale funding described in Category 1). | | | | |
| *Category 4* | 100 percent | 75 percent | 50 percent | 25 percent. |
| Any other component of short-term wholesale funding. | | | | |