Section 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