---
kind: "section"
citation: "12 C.F.R. § 217.404"
title: "12"
number: "217.404"
heading: "Method 1 score."
url: "https://uscodex.org/cfr/12/217.404"
---

# §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)](#b) of this section.
- (b) **Systemic indicator score.**
  - (1) Except as provided in [paragraph (b)(2)](#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.

## Notes

### Amendments

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

### Authority

Authority: 12 U.S.C. 5365.

### Source

Source: Reg. Q, 80 FR 49105, Aug. 14, 2015, unless otherwise noted.

### Authority

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.

### Source

Source: Reg. Q, 78 FR 62157, 62285, Oct. 11, 2013, unless otherwise noted.

### Amendments

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