# 12 C.F.R. § 238.10 (2026): Categorization of banking organizations

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T12_P238_S238_10

## Section

- **Citation:** 12 C.F.R. § 238.10 (2026)
- **Heading:** Categorization of banking organizations
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 12 CFR: Banks and Banking / Chapter II: FEDERAL RESERVE SYSTEM / Part 238: SAVINGS AND LOAN HOLDING COMPANIES (REGULATION LL) / Subpart A: General Provisions / § 238.10: § 238.10   Categorization of banking organizations.

## Text

(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:
$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]

## Nearby sections

- [12 C.F.R. § 238.1 (2026) § 238.1   Authority, purpose and scope.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P238_S238_1.md)
- [12 C.F.R. § 238.2 (2026) § 238.2   Definitions.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P238_S238_2.md)
- [12 C.F.R. § 238.3 (2026) § 238.3   Administration.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P238_S238_3.md)
- [12 C.F.R. § 238.4 (2026) § 238.4   Records, reports, and inspections.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P238_S238_4.md)
- [12 C.F.R. § 238.5 (2026) § 238.5   Audit of savings association holding companies.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P238_S238_5.md)
- [12 C.F.R. § 238.6 (2026) § 238.6   Penalties for violations.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P238_S238_6.md)
- [12 C.F.R. § 238.7 (2026) § 238.7   Tying restriction exception.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P238_S238_7.md)
- [12 C.F.R. § 238.8 (2026) § 238.8   Safe and sound operations, and Small Bank Holding Company Policy Statement.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P238_S238_8.md)
- [12 C.F.R. § 238.9 (2026) § 238.9   Control over securities.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P238_S238_9.md)
- [12 C.F.R. § 238.10 (2026) § 238.10   Categorization of banking organizations.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P238_S238_10.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T12_P238_S238_10. Check the current official text before relying on it. Not legal advice.