(a) Definition. A financial holding company is a bank holding company
that meets the requirements of this section.
(b) Requirements to be a financial holding company. In order to be a financial holding company—
(1) all depository institutions controlled
by the bank holding company must be and remain well capitalized;
(2) all depository institutions
controlled by the bank holding company must be and remain well managed;
and
(3) the bank holding
company must have made an effective election to become a financial
holding company.
(c) Requirements for foreign banks that are or are
owned by bank holding companies.
(1) Foreign banks
with U.S. branches or agencies that also own U.S. banks. A foreign
bank that is a bank holding company and that operates a branch or
agency or owns or controls a commercial lending company in the United
States must comply with the requirements of this section, section
225.82, and sections 225.90 through 225.92 in order to be a financial
holding company. After it becomes a financial holding company, a foreign
bank described in this paragraph will be subject to the provisions
of sections 225.83, 225.84, 225.93, and 225.94.
(2) Bank holding
companies that own foreign banks with U.S. branches or agencies. A bank holding company that owns a foreign bank that operates a
branch or agency or owns or controls a commercial lending company
in the United States must comply with the requirements of this section,
and sections 225.90 through 225.92 in order to be a financial holding
company. After it becomes a financial holding company, a bank holding
company described in this paragraph will be subject to the provisions
of sections 225.83, 225.84, 225.93, and 225.94.
