12 C.F.R. § 225.1 Authority, purpose, and scope.
Title 12 - Banks and Banking
(a) Authority. This part1 1 Code of Federal Regulations, title 12, chapter II, part 225. (b) Purpose. The principal purposes of this part are to: (1) Regulate the acquisition of control of banks by companies and individuals; (2) Define and regulate the nonbanking activities in which bank holding companies and foreign banking organizations with United States operations may engage; and (3) Set forth the procedures for securing approval for these transactions and activities. (c) Scope—(1) Subpart A contains general provisions and definitions of terms used in this regulation. (2) Subpart B governs acquisitions of bank or bank holding company securities and assets by bank holding companies or by any company that will become a bank holding company as a result of the acquisition. (3) Subpart C defines and regulates the nonbanking activities in which bank holding companies and foreign banking organizations may engage directly or through a subsidiary. The Board's Regulation K governs certain nonbanking activities conducted by foreign banking organizations and certain foreign activities conducted by bank holding companies (12 CFR part 211, International Banking Operations). (4) Subpart D specifies situations in which a company is presumed to control voting securities or to have the power to exercise a controlling influence over the management or policies of a bank or other company; sets forth the procedures for making a control determination; and provides rules governing the effectiveness of divestitures by bank holding companies. (5) Subpart E governs changes in bank control resulting from the acquisition by individuals or companies (other than bank holding companies) of voting securities of a bank holding company or state member bank of the Federal Reserve System. (6) Subpart F specifies the limitations that govern companies that control so-called nonbank banks and the activities of nonbank banks. (7) Subpart G prescribes minimum standards that apply to the performance of real estate appraisals and identifies transactions that require state certified appraisers. (8) Subpart H identifies the circumstances when written notice must be provided to the Board prior to the appointment of a director or senior officer of a bank holding company and establishes procedures for obtaining the required Board approval. (9) Subpart I establishes the procedure by which a bank holding company may elect to become a financial holding company, enumerates the consequences if a financial holding company ceases to meet a requirement applicable to a financial holding company, lists the activities in which a financial holding company may engage, establishes the procedure by which a person may request the Board to authorize additional activities as financial in nature or incidental thereto, and establishes the procedure by which a financial holding company may seek approval to engage in an activity that is complementary to a financial activity. (10) Subpart J governs the conduct of merchant banking investment activities by financial holding companies as permitted under section 4(k)(4)(H) of the Bank Holding Company Act (12 U.S.C. 1843(k)(4)(H)). (11) Appendix A to the regulation contains the Board's Risk-Based Capital Adequacy Guidelines for bank holding companies. (12) Appendix B contains the Board's Capital Adequacy Guidelines for measuring leverage for bank holding companies and state member banks. (13) Appendix C contains the Board's policy statement governing small bank holding companies. (14) Appendix D contains the Board's Capital Adequacy Guidelines for measuring tier 1 leverage for bank holding companies. (15) Appendix E contains the Board's Capital Adequacy Guidelines for measuring market risk of bank holding companies. (16) Appendix F contains the Interagency Guidelines Establishing Information Security Standards. [Reg. Y, 62 FR 9319, Feb. 28, 1997, as amended at 65 FR 16472, Mar. 28, 2000; 66 FR 414, Jan. 3, 2001; 66 FR 8484, Jan. 31, 2001; 66 FR 8636, Feb. 1, 2001]
Title 12: Banks and Banking
PART 225—BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL (REGULATION Y)
Subpart A—General Provisions
§ 225.1 Authority, purpose, and scope.