Bank Holding Company - Expansion

Sections 225.14 and 225.15 of Regulation Y (Subpart B - Acquisition of Bank Securities or Assets)

Who must file?

A bank holding company proposing to acquire control of a bank or bank holding company securities or the acquisition of bank assets generally must apply for the Board's prior approval under section 3 of the Bank Holding Company Act and section 225.15 of Regulation Y.  However, certain transactions may qualify for expedited procedures in lieu of a full application filing.  For example, 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).  A filer may request a waiver of filing requirements pursuant to section 225.12(d)(2) of Regulation Y. 

Publication requirements - newspaper/Federal Register

Pursuant to section 225.16, The applicant must publish a notice in the relevant local newspaper(s) and the Federal Reserve will publish a notice in the Federal Register for proposals submitted under section 225.14.

Required information

For notices submitted under section 225.14, provide the information required in Form FR Y-3N.  For applications submitted under section 225.15, provide the information required in Form FR Y-3.  Note that a response should be provided for all report items.  Please enter “not applicable” or “N/A,” where appropriate.

Processing time frames

The notice period under section 225.14 within three to five business days after the close of the public comment period unless the Federal Reserve extends the period for action.

Factors reviewed

The Federal Reserve would consider the factors in section 225.14(c) of Regulation Y.

Consummation period

Acquisition proposals under sections 225.14 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 expires three months from the end of the waiting period unless extended by the Federal Reserve.