(a) Savings and
loan holding company policy and operations.
(1) A savings and loan holding company
shall serve as a source of financial and managerial strength to its
subsidiary savings associations and shall not conduct its operations
in an unsafe or unsound manner.
(2) Whenever the Board believes an activity of a savings and loan
holding company or control of a nonbank subsidiary (other than a nonbank
subsidiary of a savings association) constitutes a serious risk to
the financial safety, soundness, or stability of a subsidiary savings
association of the savings and loan holding company and is inconsistent
with sound banking principles or the purposes of HOLA or the Financial
Institutions Supervisory Act of 1966, as amended (12 U.S.C. 1818(b) et seq.), the Board may require the savings and loan holding
company to terminate the activity or to terminate control of the subsidiary,
as provided in section 10(g)(5) of the HOLA.
(b)
The Board’s Small Bank Holding Company Policy Statement (12 CFR part
225, appendix C) (Policy Statement) applies to savings and loan holding
companies as if they were bank holding companies. To qualify or rely
on the Policy Statement, savings and loan holding companies must meet
all qualifying requirements in the Policy Statement as if they were
a bank holding company. For purposes of applying the Policy Statement,
the term “nonbank subsidiary” as used in the Policy Statement refers
to a subsidiary of a savings and loan holding company other than a
savings association or a subsidiary of a savings association.
(c) The Board may exclude any savings and loan holding company, regardless
of asset size, from the Policy Statement under paragraph (b) of this
section if the Board determines that such action is warranted for
supervisory purposes.
