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Board of Governors of the Federal Reserve System
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Board of Governors of the Federal Reserve System

Electronic Applications and Applications Filing Information

Bank Holding Company


Formation/Expansion

Sections 225.14, 225.15, and 225.17 of Regulation Y

Who must file?
A company proposing to: become a bank holding company, acquire a subsidiary bank, or acquire control of bank or bank holding company securities generally must apply for the Board’s prior approval under section 3 of the Bank Holding Company Act. However, certain transactions may qualify for prior notice procedures. The formation of a one-bank holding company may qualify for prior notice if the proposal meets the criteria in section 225.17(a). Similarly, an existing bank holding company proposing to acquire 5 percent or more of an additional bank or bank holding company or to merge with another bank holding company may provide prior notice to the Federal Reserve if the proposal meets the criteria in section 225.14(c). For formation or acquisition proposals not qualifying for one of the prior notice procedures (or for organizations otherwise directed by the Federal Reserve to do so), a company must file an application for prior Federal Reserve approval under section 225.15 of Regulation Y.1 

Publication requirements--newspaper/Federal Register
The applicant must publish a notice in the local newspaper(s) and the Federal Reserve will publish a notice in the Federal Register for proposals submitted under sections 225.14 or 225.15. No publication is required for notices submitted under section 225.17.

Required forms
F or notices submitted under sections 225.14 or 225.17, the information requested in Form FR Y-3N must be provided. For applications submitted under section 225.15, the information requested in Form FR Y-3 must be provided. For applications submitted by foreign organization, the information requested in Form FR Y-3F must be provided.

Processing time frames
The notice period under section 225.17 expires 30 calendar days after the notice is received by the Federal Reserve. The notice period under section 225.14 expires up to five business days after the close of the public comment period unless the Federal Reserve extends the period. The Federal Reserve normally acts on an application under section 225.15 within 30 calendar days after receipt or within 5 business days after the close of the public comment period (whichever is later) unless the Federal Reserve notifies the applicant that the period is being extended. Applications that require review or action by the Board are normally acted upon within 60 days after receipt unless the Federal Reserve notifies the applicant that the period is being extended.

Factors reviewed
For formation or acquisition proposals, the Federal Reserve would consider the factors in section 225.13 of Regulation Y.

Consummation period
Formation proposals under section 225.17 may be consummated immediately. Formation or acquisition proposals under sections 225.14 or 225.15 may not be consummated for 30 calendar days after action by the Federal Reserve unless the Department of Justice authorizes a waiting period of 15 calendar days. Normally a 15-day waiting period is authorized. Authority to consummate any of the transactions would expire three months from the earliest date on which the transaction could have been consummated unless extended by the Federal Reserve. The consummation period may not be extended beyond one calendar year from the date the application was approved by the Federal Reserve.

Bank Holding Company Reporting
Bank holding companies are required to file with the Federal Reserve various reports for themselves or on behalf of their subsidiaries. These reports include organizational structure reports as well as financial reports. A quick reference chart of reports (37 KB PDF) shows which reports a bank holding company would be required to file, depending on certain criteria. If you have any questions, please contact the appropriate Federal Reserve Bank for assistance.


1 Certain transactions that meet the criteria in section 225.12(d)(2) of Regulation Y may not require the filing of a prior notice or application. Return to text.

Nonbank Activities

Sections 225.22, 225.23, and 225.24 of Regulation Y

Who must file?
An existing bank holding company proposing to engage in permissible nonbanking activities, on a de novo basis, may provide notice to the Federal Reserve after commencing the activity(ies) if the bank holding company and the proposal meet the criteria in section 225.22(a) of Regulation Y. A bank holding company proposing to engage in permissible nonbanking activities either de novo, or through the acquisition of an existing company, must provide prior notice to the Federal Reserve if the bank holding company and the proposal meet the criteria in section 225.23(c) of Regulation Y.1 For transactions that do not qualify for the post or expedited prior notice procedures, a bank holding company must file a notice for prior Federal Reserve approval under section 225.24 of Regulation Y.

Publication requirements--newspaper/Federal Register
No publication is required for proposals under sections 225.22 or 225.23. The Federal Reserve will publish a notice in the Federal Register for proposals under section 225.24.2 

Required forms
For notices submitted under section 225.22, the bank holding company must provide the information requested in Form FR Y-10 (if appropriate) or must otherwise advise the appropriate Reserve Bank. For notices submitted under sections 225.23 or 225.24, the information requested in Form FR Y-4 must be provided.

Processing time frames
The notice period under section 225.23 expires 12 business days after a complete notice is received by the Federal Reserve. The Federal Reserve normally acts on an application under section 225.24 within 30 calendar days after receipt unless the Federal Reserve notifies the applicant that the period is being extended. Notices that require review or action by the Board are normally acted upon within 60 days after receipt unless the Federal Reserve notifies the applicant that the period is being extended.

Factors reviewed
For proposals to engage in or acquire a company to engage in a nonbanking activity, the Federal Reserve considers the factors in section 225.26 of Regulation Y.

Consummation period
Proposals to engage in nonbanking activities may be consummated immediately. Authority to consummate a nonbanking transaction would expire 12 months from the earliest date on which the transaction could have been consummated unless extended by the Federal Reserve.


1 A bank holding company must file a notice under section 225.24 of Regulation Y for proposals involving the acquisition or establishment of a thrift institution. Return to text.
2 A bank holding company proposing to establish or acquire a thrift institution must also publish a notice in local newspapers under section 225.14. Return to text.

Change in Control

Sections 225.41, 225.42, and 225.43 of Regulation Y

Who must file?
Any person, as defined in section 225.2 of Regulation Y, proposing to acquire control of a bank holding company must provide prior notice to the Federal Reserve under section 225.43 of Regulation Y.

Publication requirements--newspaper/Federal Register
For change in control proposals, a person must publish a notice in the local newspaper(s) and the Federal Reserve will publish a notice in the Federal Register.

Required forms
The information requested in Form FR 2081a and Form FR 2081c must be submitted.

Processing time frames
The notice period would expire 60 days after the notice is received by the Federal Reserve unless the Federal Reserve notifies the applicant that the period is being extended.

Factors reviewed
For change in control proposals, the Federal Reserve considers the factors in section 225.43(g) of Regulation Y.

Consummation period
Change in control proposals may be consummated immediately. Authority to consummate a change in control transaction would expire three months from the earliest date on which the transaction could have been consummated unless extended by the Federal Reserve. The consummation period may not be extended beyond one calendar year from the date the notice was acted on by the Federal Reserve.


Emergency Applications

Overview
Emergency conditions associated with a problem or failing banking organization may allow for processing of an application under the streamlined procedures of the Bank Holding Company Act, the Federal Deposit Insurance Act, the Change in Bank Control Act, or the Federal Reserve Act.1 The two types of emergency procedures are expeditious action and immediate action. Under the expeditious action procedures, the Federal Reserve allows the public up to 10 days to comment on a proposal. Under the immediate action procedures, the Federal Reserve would act on a proposal as soon as possible.

Potential filers are encouraged to contact the Federal Reserve as early as possible to discuss emergency procedures. While all applications or notifications involving a failing institution would be reviewed, only a filing by an organization or individual identified by the FDIC as a winner in the bidding process is ultimately approved.

Who must file?
Bank holding companies, banks, or individuals proposing to acquire a failing banking organization.

Publication requirements--newspaper/Federal Register
Under the expeditious action procedure, the applicant must publish a notice in local newspapers and the Federal Reserve will publish a notice in the Federal Register with a public comment period of 10 days. Under the immediate action procedure, no publication notice is required.

Processing time frames
Under the expeditious action procedure, the Federal Reserve would act on an application as soon as practicable, taking into account the expiration of the public comment period. Under the immediate action procedure, the Federal Reserve would act on an application on the same day that the failing institution is closed.

Consummation period
For applications approved under the expeditious action procedure, which normally involve a waiting period after approval (for example, Bank Holding Company Act and Bank Merger Act filings), the proposal may be consummated on or after the fifth calendar day following the approval date. For applications processed under the expeditious action procedures, which normally do not involve a waiting period, and for all applications processed under the immediate action procedures, the proposal may be consummated immediately.


1 Emergency procedures cannot be used without a letter from the chartering authority of the failing financial institution. Return to text.

Notice of Addition or Change in Directors or Senior Executive Officers

Section 225.72 of Regulation Y

Who must file?
A bank holding company must provide prior notice to the Federal Reserve to add a director or a senior executive officer if the company meets the criteria in section 225.72 of Regulation Y. An institution may request a waiver of the prior notice requirement if the individual's services are needed immediately.

Publication requirements--newspaper/Federal Register
No publication notice is required.

Required forms
The information requested in Form FR 2081b and Form FR 2081c must be submitted.

Processing time frames
The notice period expires 30 days after the notice is received by the Federal Reserve unless the Federal Reserve notifies the applicant that the processing period is being extended.

Factors reviewed
For proposals to add a director or senior officer, the Federal Reserve considers the factors in section 225.73(c) of Regulation Y.

Consummation period
These proposals may be consummated immediately.


Stock Redemption

Section 225.4(b) of Regulation Y

Who must file?
A bank holding company must provide prior notice to the Federal Reserve under section 225.4(b) of Regulation Y before purchasing or redeeming its equity securities if the gross consideration for the purchase or redemption, when aggregated with the net consideration paid by the company for all such purchases or redemptions during the preceding 12 months, is equal to 10 percent or more of the company's consolidated net worth.

Publication requirements--newspaper/Federal Register
No publication notice is required.

Required information
Notices must be submitted in the form of a letter that includes the information requested in section 225.4(b)(2) of Regulation Y.

Processing time frames
The notice period expires 15 days after the notice is received by the Federal Reserve unless the Federal Reserve notifies the applicant that the period is being extended for another 15 days.

Factors reviewed
For stock redemption proposals, the Federal Reserve considers the factors in section 225.4(b)(4) of Regulation Y.

Consummation period
None.


Last update: August 22, 2011