12 CFR 502.27 - How does OTS determine the risk/complexity component for a savings and loan holding company?

§ 502.27 How does OTS determine the risk/complexity component for a savings and loan holding company?
(a) OTS computes the risk/complexity component for responsible savings and loan holding companies using schedules that set out charges based on OTS holding company risk/complexity classifications and total consolidated holding company assets. OTS will establish these schedules in a Thrift Bulletin.
(b) For the purposes of this section, the holding company risk/complexity classification is the most recent risk/complexity classification of which OTS notified the savings and loan holding company in writing before an assessment's due date.
(1) OTS classifies holding companies as Category I (low risk, noncomplex holding company); Category II (complex or high risk holding company); or Category III (conglomerate).
(2) The OTS holding company risk/complexity classifications reflect OTS's assessment of a holding company's financial condition, financial independence of the savings association and other affiliates that are regulated financial entities, operational independence of the savings association and other affiliates that are regulated financial entities, reputational risks raised by affiliation with the holding company, and management experience of the holding company, savings association, and affiliates. The OTS holding company risk/complexity classification system is more fully described in the OTS Holding Company Handbook.
(3) A conglomerate is a holding company that: (i) is one of the most complex or highest risk holding companies under the holding company risk/complexity classification system; (ii) is made up of a number of different companies or legal enterprises that offer products from more than one financial sector (e.g., insurance, securities, and banking) or operate in diversified fields; and (iii) generally manages these companies and enterprises along functional lines, rather than as separate legal entities.
(c) OTS uses the following chart to compute the risk/complexity component under this section. OTS will establish the amounts in column C and D in the Thrift Bulletin for each holding company risk/complexity classification. The amounts established for column C and D that are applicable to conglomerates will be three times the amounts established for column C and D for complex or higher risk holding company enterprises of the same asset size.
If your total consolidated assets are . . . Your risk/complexity component is . . .
Over . . . But not over . . . This amount . . . Plus—this marginal rate . . . Of assets over . . .
Column A Column B Column C Column D Column E
$0 $150 Million C1 D1 $0
150 Million 250 Million C2 D2 150 Million
250 Million 500 Million C3 D3 250 Million
500 Million 1 Billion C4 D4 500 Million
1 Billion 5 Billion C5 D5 1 Billion
5 Billion 50 Billion C6 D6 5 Billion
50 Billion 100 Billion C7 D7 50 Billion
100 Billion 300 Billion C8 D8 100 Billion
Over 300 Billion C9 D9 300 Billion
(d) To compute your risk/complexity component, find the row in the appropriate schedule that describes your total consolidated assets by referring to the amounts in Columns A and B. In that row, calculate how much your total consolidated assets exceed the class floor (Column E); multiply this number by your marginal rate (Column D); and add the product to the amount in Column C. The total is your risk/complexity component.

Title 12 published on 2014-01-01

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