# 12 CFR § 238.10: Categorization of banking organizations

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-12-238.10

## Section

- **Citation:** 12 CFR § 238.10
- **Heading:** Categorization of banking organizations
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 12—Banks and Banking > CHAPTER II—FEDERAL RESERVE SYSTEM > SUBCHAPTER A—BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM > PART 238—SAVINGS AND LOAN HOLDING COMPANIES (REGULATION LL) > Subpart A—General Provisions

## 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:
(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 CFR § 238.1 § 238.1 Authority, purpose and scope.](https://www.frixlaw.com/law-library/statutes/ecfr-12-238.1.md)
- [12 CFR § 238.2 § 238.2 Definitions.](https://www.frixlaw.com/law-library/statutes/ecfr-12-238.2.md)
- [12 CFR § 238.3 § 238.3 Administration.](https://www.frixlaw.com/law-library/statutes/ecfr-12-238.3.md)
- [12 CFR § 238.4 § 238.4 Records, reports, and inspections.](https://www.frixlaw.com/law-library/statutes/ecfr-12-238.4.md)
- [12 CFR § 238.5 § 238.5 Audit of savings association holding companies.](https://www.frixlaw.com/law-library/statutes/ecfr-12-238.5.md)
- [12 CFR § 238.6 § 238.6 Penalties for violations.](https://www.frixlaw.com/law-library/statutes/ecfr-12-238.6.md)
- [12 CFR § 238.7 § 238.7 Tying restriction exception.](https://www.frixlaw.com/law-library/statutes/ecfr-12-238.7.md)
- [12 CFR § 238.8 § 238.8 Safe and sound operations, and Small Bank Holding Company Policy Statement.](https://www.frixlaw.com/law-library/statutes/ecfr-12-238.8.md)
- [12 CFR § 238.9 § 238.9 Control over securities.](https://www.frixlaw.com/law-library/statutes/ecfr-12-238.9.md)
- [12 CFR § 238.10 § 238.10 Categorization of banking organizations.](https://www.frixlaw.com/law-library/statutes/ecfr-12-238.10.md)
- [12 CFR § 238.11 § 238.11 Transactions requiring Board approval.](https://www.frixlaw.com/law-library/statutes/ecfr-12-238.11.md)
- [12 CFR § 238.12 § 238.12 Transactions not requiring Board approval.](https://www.frixlaw.com/law-library/statutes/ecfr-12-238.12.md)
- [12 CFR § 238.13 § 238.13 Prohibited acquisitions.](https://www.frixlaw.com/law-library/statutes/ecfr-12-238.13.md)
- [12 CFR § 238.14 § 238.14 Procedural requirements.](https://www.frixlaw.com/law-library/statutes/ecfr-12-238.14.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-12-238.10. Check the current official text before relying on it. Not legal advice.