# 12 CFR Part 327, Subpart A, Appendix B to Subpart A of Part 327 - Conversion of Scorecard Measures into Score

Appendix B to Subpart A of Part 327—Conversion of Scorecard Measures into Score

1. Weighted Average CAMELS Rating

Weighted average CAMELS ratings between 1 and 3.5 are assigned a score between 25 and 100 according to the following equation:

*S*= 25 [(20/3) * (

*C*

^{2}−1)],

where:

*S*= the weighted average CAMELS score; and

*C*= the weighted average CAMELS rating.

2. Other Scorecard Measures

For certain scorecard measures, a lower ratio implies lower risk and a higher ratio implies higher risk. These measures include:

• Concentration measure;

• Credit quality measure;

• Market risk measure;

• Average short-term funding to average total assets ratio; and

• Potential losses to total domestic deposits ratio (loss severity measure).

For those measures, a value between the minimum and maximum cutoff values is converted linearly to a score between 0 and 100, according to the following formula:

*S*= (

*V −*Min) * 100/(Max −Min),

where

*S*is score (rounded to three decimal points),*V*is the value of the measure, Min is the minimum cutoff value and Max is the maximum cutoff value.For other scorecard measures, a lower value represents higher risk and a higher value represents lower risk. These measures include:

• Tier 1 leverage ratio;

• Core earnings to average quarter-end total assets ratio;

• Core deposits to total liabilities ratio; and

• Balance sheet liquidity ratio.

For those measures, a value between the minimum and maximum cutoff values is converted linearly to a score between 0 and 100, according to the following formula:

*S*= (Max −

*V*) * 100/(Max −Min),

where

*S*is score (rounded to three decimal points),*V*is the value of the measure, Max is the maximum cutoff value and Min is the minimum cutoff value.[76 FR 10720, Feb. 25, 2011]

**Title 12 published on 2014-01-01**

no entries appear in the Federal Register **after** this date.