---
kind: "section"
citation: "12 C.F.R. § 3.123"
title: "12"
number: "3.123"
heading: "Ongoing qualification."
url: "https://uscodex.org/cfr/12/3.123"
---

# §3.123. Ongoing qualification.

- (a) **Changes to advanced systems.** A national bank or Federal savings association must meet all the qualification requirements in [§ 3.122](/cfr/12/3.122.md) on an ongoing basis. A national bank or Federal savings association must notify the OCC when the national bank or Federal savings association makes any change to an advanced system that would result in a material change in the national bank's or Federal savings association's advanced approaches total risk-weighted asset amount for an exposure type or when the national bank or Federal savings association makes any significant change to its modeling assumptions.
- (b) **Failure to comply with qualification requirements.**
  - (1) If the OCC determines that a national bank or Federal savings association that uses this subpart and that has conducted a satisfactory parallel run fails to comply with the qualification requirements in [§ 3.122](/cfr/12/3.122.md), the OCC will notify the national bank or Federal savings association in writing of the national bank's or Federal savings association's failure to comply.
  - (2) The national bank or Federal savings association must establish and submit a plan satisfactory to the OCC to return to compliance with the qualification requirements.
  - (3) In addition, if the OCC determines that the national bank's or Federal savings association's advanced approaches total risk-weighted assets are not commensurate with the national bank's or Federal savings association's credit, market, operational, or other risks, the OCC may require such a national bank or Federal savings association to calculate its advanced approaches total risk-weighted assets with any modifications provided by the OCC.

## Notes

### Source

Source: 78 FR 62157, 62273, Oct. 11, 2013, unless otherwise noted.

### Authority

Authority: 12 U.S.C. 93a, 161, 1462, 1462a, 1463, 1464, 1818, 1828(n), 1828 note, 1831n note, 1835, 3907, 3909, 5371, 5371 note, 5412(b)(2)(B), and Pub. L. 116-136, 134 Stat. 281.

### Source

Source: 50 FR 10216, Mar. 14, 1985, unless otherwise noted.