Wells Fargo continued to reduce its systemic footprint in the third quarter, and may be in line for a smaller too-big-to-fail capital surcharge in 2022 as a result.

The San Francisco-based bank had a systemic risk score, as calculated using the Federal Reserve’s methodology, of 323 basis points as of end-September, down from 335bp in Q2. This is below the 330bp threshold at which its current 2% systemic risk capital add-on applies. If Wells Fargo makes it to year-end with its score below 330bp