12 USC 1831c - Assuring consistent oversight of subsidiaries of holding companies

U.S Code last checked for updates: May 18, 2024

§ 1831c.

Assuring consistent oversight of subsidiaries of holding companies

(a)

Definitions

For purposes of this section:

(1)

Board

(2)

Functionally regulated subsidiary

(3)

Lead insured depository institution

(b)

Examination requirements

(c)

State coordination

(1)

Consultation and coordination

(2)

Alternating examinations permitted

(d)

Appropriate Federal banking agency backup examination authority

(1)

In general

(2)

Examination by an appropriate Federal banking agency

If the Board does not, before the end of the 60-day period beginning on the date on which the Board receives a recommendation under paragraph (1), begin an examination as required under subsection (b) or provide a written explanation or plan to the appropriate Federal banking agency making such recommendation responding to the concerns raised by the appropriate Federal banking agency for the lead insured depository institution, the appropriate Federal banking agency for the lead insured depository institution may, subject to the Consumer Financial Protection Act of 2010, examine the activities that are permissible for a depository institution subsidiary conducted by such nondepository institution subsidiary (other than a functionally regulated subsidiary or a subsidiary of a depository institution) of the depository institution holding company as if the nondepository institution subsidiary were an insured depository institution for which the appropriate Federal banking agency of the lead insured depository institution was the appropriate Federal banking agency, to determine whether the activities—

(A)

pose a material threat to the safety and soundness of any insured depository institution subsidiary of the depository institution holding company;

(B)

are conducted in accordance with applicable Federal law; and

(C)

are subject to appropriate systems for monitoring and controlling the financial, operating, and other material risks of the activities that may pose a material threat to the safety and soundness of the insured depository institution subsidiaries of the holding company.

(3)

Agency coordination with the Board

An appropriate Federal banking agency that conducts an examination pursuant to paragraph (2) shall coordinate examination of the activities of nondepository institution subsidiaries described in subsection (b) with the Board in a manner that—

(A)

avoids duplication;

(B)

shares information relevant to the supervision of the depository institution holding company;

(C)

achieves the objectives of subsection (b); and

(D)

ensures that the depository institution holding company and the subsidiaries of the depository institution holding company are not subject to conflicting supervisory demands by such agency and the Board.

(4)

Fee permitted for examination costs

(e)

Referrals for enforcement by appropriate Federal banking agency

(1)

Recommendation of enforcement action

(2)

Back-up authority of the appropriate Federal banking agency

(f)

Coordination among appropriate Federal banking agencies

Each Federal banking agency, prior to or when exercising authority under subsection (d) or (e) shall—

(1)

provide reasonable notice to, and consult with, the appropriate Federal banking agency or State bank supervisor (or other State regulatory agency) of the nondepository institution subsidiary of a depository institution holding company that is described in subsection (d) before commencing any examination of the subsidiary;

(2)

to the fullest extent possible—

(A)

rely on the examinations, inspections, and reports of the appropriate Federal banking agency or the State bank supervisor (or other State regulatory agency) of the subsidiary;

(B)

avoid duplication of examination activities, reporting requirements, and requests for information; and

(C)

ensure that the depository institution holding company and the subsidiaries of the depository institution holding company are not subject to conflicting supervisory demands by the appropriate Federal banking agencies.

(g)

Rule of construction

(Sept. 21, 1950, ch. 967, § 2[26], as added Pub. L. 111–203, title VI, § 605(a), July 21, 2010, 124 Stat. 1604.)

cite as: 12 USC 1831c