---
kind: "section"
citation: "12 U.S.C. § 1831c"
title: "12"
title_heading: "Banks and Banking"
number: "1831c"
heading: "Assuring consistent oversight of subsidiaries of holding companies"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/1831c"
units:
  - "Chapter 16 — Federal Deposit Insurance Corporation"
---

# §1831c. Assuring consistent oversight of subsidiaries of holding companies

- (a) **Definitions—** For purposes of this section:
  - (1) **Board—** The term “[Board](/usc/12/1861.md?p=b-3)” means the [Board](/usc/12/1861.md?p=b-3) of Governors of the Federal Reserve System.
  - (2) **Functionally regulated subsidiary—** The term “functionally regulated [subsidiary](/usc/12/1813.md?p=w-4)” has the same meaning as in [section 1844(c)(5)](/usc/12/1844.md?p=c-5)[^1] of this title.
  - (3) **Lead insured depository institution—** The term “lead [insured depository institution](/usc/12/1813.md?p=c-2)” has the same meaning as in [section 1841(o)(8)](/usc/12/1841.md?p=o-8)[^1] of this title.
- (b) **Examination requirements—** Subject to subtitle B of the [Consumer](/usc/12/5481.md?p=4) Financial Protection Act of 2010 [[12 U.S.C. 5511](/usc/12/5511.md) et seq.], the [Board](/usc/12/1861.md?p=b-3) shall examine the activities of a nondepository institution [subsidiary](/usc/12/1813.md?p=w-4) (other than a functionally regulated [subsidiary](/usc/12/1813.md?p=w-4) or a [subsidiary](/usc/12/1813.md?p=w-4) of a [depository institution](/usc/12/1813.md?p=c-1)) of a [depository institution holding company](/usc/12/1813.md?p=w-1) that are permissible for the [insured depository institution](/usc/12/1813.md?p=c-2) [subsidiaries](/usc/12/1813.md?p=w-4) of the [depository institution holding company](/usc/12/1813.md?p=w-1) in the same manner, subject to the same standards, and with the same frequency as would be required if such activities were conducted in the lead [insured depository institution](/usc/12/1813.md?p=c-2) of the [depository institution holding company](/usc/12/1813.md?p=w-1).
- (c) **State coordination—**
  - (1) **Consultation and coordination—** If a nondepository institution [subsidiary](/usc/12/1813.md?p=w-4) is supervised by a [State bank supervisor](/usc/12/1813.md?p=r-1) or other [State](/usc/12/1813.md?p=a-3) regulatory authority, the [Board](/usc/12/1861.md?p=b-3), in conducting the examinations required in [subsection (b)](#b), shall consult and coordinate with such [State](/usc/12/1813.md?p=a-3) regulator.
  - (2) **Alternating examinations permitted—** The examinations required under [subsection (b)](#b) may be conducted in joint or alternating manner with a [State](/usc/12/1813.md?p=a-3) regulator, if the [Board](/usc/12/1861.md?p=b-3) determines that an examination of a nondepository institution [subsidiary](/usc/12/1813.md?p=w-4) conducted by the [State](/usc/12/1813.md?p=a-3) carries out the purposes of this section.
- (d) **Appropriate Federal banking agency backup examination authority—**
  - (1) **In general—** In the event that the [Board](/usc/12/1861.md?p=b-3) does not conduct examinations required under [subsection (b)](#b) in the same manner, subject to the same standards, and with the same frequency as would be required if such activities were conducted by the lead [insured depository institution](/usc/12/1813.md?p=c-2) [subsidiary](/usc/12/1813.md?p=w-4) of the [depository institution holding company](/usc/12/1813.md?p=w-1), the [appropriate Federal banking agency](/usc/12/1813.md?p=q) for the lead [insured depository institution](/usc/12/1813.md?p=c-2) may recommend in writing (which shall include a written explanation of the concerns giving rise to the recommendation) that the [Board](/usc/12/1861.md?p=b-3) perform the examination required under [subsection (b)](#b).
  - (2) **Examination by an appropriate Federal banking agency—** If the [Board](/usc/12/1861.md?p=b-3) does not, before the end of the 60-day period beginning on the date on which the [Board](/usc/12/1861.md?p=b-3) receives a recommendation under [paragraph (1)](#d-1), begin an examination as required under [subsection (b)](#b) or provide a written explanation or plan to the [appropriate Federal banking agency](/usc/12/1813.md?p=q) making such recommendation responding to the concerns raised by the [appropriate Federal banking agency](/usc/12/1813.md?p=q) for the lead [insured depository institution](/usc/12/1813.md?p=c-2), the [appropriate Federal banking agency](/usc/12/1813.md?p=q) for the lead [insured depository institution](/usc/12/1813.md?p=c-2) may, subject to the [Consumer](/usc/12/5481.md?p=4) Financial Protection Act of 2010, examine the activities that are permissible for a [depository institution](/usc/12/1813.md?p=c-1) [subsidiary](/usc/12/1813.md?p=w-4) conducted by such nondepository institution [subsidiary](/usc/12/1813.md?p=w-4) (other than a functionally regulated [subsidiary](/usc/12/1813.md?p=w-4) or a [subsidiary](/usc/12/1813.md?p=w-4) of a [depository institution](/usc/12/1813.md?p=c-1)) of the [depository institution holding company](/usc/12/1813.md?p=w-1) as if the nondepository institution [subsidiary](/usc/12/1813.md?p=w-4) were an [insured depository institution](/usc/12/1813.md?p=c-2) for which the [appropriate Federal banking agency](/usc/12/1813.md?p=q) of the lead [insured depository institution](/usc/12/1813.md?p=c-2) was the [appropriate Federal banking agency](/usc/12/1813.md?p=q), to determine whether the activities—
    - (A) pose a material threat to the safety and soundness of any [insured depository institution](/usc/12/1813.md?p=c-2) [subsidiary](/usc/12/1813.md?p=w-4) of the [depository institution holding company](/usc/12/1813.md?p=w-1);
    - (B) are conducted in accordance with applicable Federal law; and
    - (C) are subject to appropriate systems for monitoring and controlling the financial, operating, and other material risks of the activities that may pose a material threat to the safety and soundness of the [insured depository institution](/usc/12/1813.md?p=c-2) [subsidiaries](/usc/12/1813.md?p=w-4) of the holding [company](/usc/12/1813.md?p=w-7).
  - (3) **Agency coordination with the Board—** An [appropriate Federal banking agency](/usc/12/1813.md?p=q) that conducts an examination pursuant to [paragraph (2)](#d-2) shall coordinate examination of the activities of nondepository institution [subsidiaries](/usc/12/1813.md?p=w-4) described in [subsection (b)](#b) with the [Board](/usc/12/1861.md?p=b-3) in a manner that—
    - (A) avoids duplication;
    - (B) shares information relevant to the supervision of the [depository institution holding company](/usc/12/1813.md?p=w-1);
    - (C) achieves the objectives of [subsection (b)](#b); and
    - (D) ensures that the [depository institution holding company](/usc/12/1813.md?p=w-1) and the [subsidiaries](/usc/12/1813.md?p=w-4) of the [depository institution holding company](/usc/12/1813.md?p=w-1) are not subject to conflicting supervisory demands by such agency and the [Board](/usc/12/1861.md?p=b-3).
  - (4) **Fee permitted for examination costs—** An [appropriate Federal banking agency](/usc/12/1813.md?p=q) that conducts an examination or enforcement action pursuant to this section may collect an assessment, fee, or such other charge from the [subsidiary](/usc/12/1813.md?p=w-4) as the [appropriate Federal banking agency](/usc/12/1813.md?p=q) determines necessary or appropriate to carry out the responsibilities of the [appropriate Federal banking agency](/usc/12/1813.md?p=q) in connection with such examination.
- (e) **Referrals for enforcement by appropriate Federal banking agency—**
  - (1) **Recommendation of enforcement action—** The [appropriate Federal banking agency](/usc/12/1813.md?p=q) for the lead [insured depository institution](/usc/12/1813.md?p=c-2), based upon its examination of a nondepository institution [subsidiary](/usc/12/1813.md?p=w-4) conducted pursuant to [subsection (d)](#d), or other relevant information, may submit to the [Board](/usc/12/1861.md?p=b-3), in writing, a recommendation that the [Board](/usc/12/1861.md?p=b-3) take enforcement action against such nondepository institution [subsidiary](/usc/12/1813.md?p=w-4), together with an explanation of the concerns giving rise to the recommendation, if the [appropriate Federal banking agency](/usc/12/1813.md?p=q) determines (by a vote of its members, if applicable) that the activities of the nondepository institution [subsidiary](/usc/12/1813.md?p=w-4) pose a material threat to the safety and soundness of any [insured depository institution](/usc/12/1813.md?p=c-2) [subsidiary](/usc/12/1813.md?p=w-4) of the [depository institution holding company](/usc/12/1813.md?p=w-1).
  - (2) **Back-up authority of the appropriate Federal banking agency—** If, within the 60-day period beginning on the date on which the [Board](/usc/12/1861.md?p=b-3) receives a recommendation under [paragraph (1)](#e-1), the [Board](/usc/12/1861.md?p=b-3) does not take enforcement action against the nondepository institution [subsidiary](/usc/12/1813.md?p=w-4) or provide a plan for supervisory or enforcement action that is acceptable to the [appropriate Federal banking agency](/usc/12/1813.md?p=q) that made the recommendation pursuant to [paragraph (1)](#e-1), such agency may take the recommended enforcement action against the nondepository institution [subsidiary](/usc/12/1813.md?p=w-4), in the same manner as if the nondepository institution [subsidiary](/usc/12/1813.md?p=w-4) were an [insured depository institution](/usc/12/1813.md?p=c-2) for which the agency was the [appropriate Federal banking agency](/usc/12/1813.md?p=q).
- (f) **Coordination among appropriate Federal banking agencies—** Each [Federal banking agency](/usc/12/1813.md?p=z), prior to or when exercising authority under subsection [(d)](#d) or [(e)](#e) shall—
  - (1) provide reasonable notice to, and consult with, the [appropriate Federal banking agency](/usc/12/1813.md?p=q) or [State bank supervisor](/usc/12/1813.md?p=r-1) (or other [State](/usc/12/1813.md?p=a-3) regulatory agency) of the nondepository institution [subsidiary](/usc/12/1813.md?p=w-4) of a [depository institution holding company](/usc/12/1813.md?p=w-1) that is described in [subsection (d)](#d) before commencing any examination of the [subsidiary](/usc/12/1813.md?p=w-4);
  - (2) to the fullest extent possible—
    - (A) rely on the examinations, inspections, and reports of the [appropriate Federal banking agency](/usc/12/1813.md?p=q) or the [State bank supervisor](/usc/12/1813.md?p=r-1) (or other [State](/usc/12/1813.md?p=a-3) regulatory agency) of the [subsidiary](/usc/12/1813.md?p=w-4);
    - (B) avoid duplication of examination activities, reporting requirements, and requests for information; and
    - (C) ensure that the [depository institution holding company](/usc/12/1813.md?p=w-1) and the [subsidiaries](/usc/12/1813.md?p=w-4) of the [depository institution holding company](/usc/12/1813.md?p=w-1) are not subject to conflicting supervisory demands by the [appropriate Federal banking agencies](/usc/12/1813.md?p=q).
- (g) **Rule of construction—** No provision of this section shall be construed as limiting any authority of the [Board](/usc/12/1861.md?p=b-3), the Corporation, or the Comptroller of the Currency under any other provision of law.

## Footnotes

[^1]: See References in Text note below.

## Source credit

(Sept. 21, 1950, ch. 967, § 2[26], as added Pub. L. 111–203, title VI, § 605(a), July 21, 2010, 124 Stat. 1604.)

## Notes

### Editorial Notes

### References in Text

Section 1844(c)(5) of this title, referred to in subsec. (a)(2), was in the original “section 5(c)(5) of the Bank Holding Company Act” and was translated as reading “section 5(c)(5) of the Bank Holding Company Act of 1956” to reflect the probable intent of Congress.

Section 1841(o)(8) of this title, referred to in subsec. (a)(3), was in the original “section 2(o)(8) of the Bank Holding Company Act” and was translated as reading “section 2(o)(8) of the Bank Holding Company Act of 1956” to reflect the probable intent of Congress.

The Consumer Financial Protection Act of 2010, referred to in subsecs. (b) and (d)(2), is title X of Pub. L. 111–203, July 21, 2010, 124 Stat. 1955, which enacted subchapter V (§ 5481 et seq.) of chapter 53 of this title and enacted, amended, and repealed numerous other sections and notes in the Code. Subtitle B of the Act is classified generally to part B (§ 5511 et seq.) of subchapter V of chapter 53 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 5301 of this title and Tables.

### Prior Provisions

A prior section 1831c, act Sept. 21, 1950, ch. 967, § 2[26], as added Nov. 10, 1978, Pub. L. 95–630, title XII, § 1205, 92 Stat. 3711; amended Oct. 15, 1982, Pub. L. 97–320, title I, § 113(p), 96 Stat. 1474; Jan. 12, 1983, Pub. L. 97–457, § 3, 96 Stat. 2507, which related to conversion, merger, or consolidation of mutual savings banks into Federal savings banks or savings banks which are insured institutions within meaning of former section 1724 of this title, was repealed by Pub. L. 103–325, title VI, § 602(f)(1), Sept. 23, 1994, 108 Stat. 2292.

### Statutory Notes and Related Subsidiaries

### Effective Date

Pub. L. 111–203, title VI, § 605(b), July 21, 2010, 124 Stat. 1607, provided that: “The amendment made by subsection (a) [enacting this section] shall take effect on the transfer date.”

[For definition of “transfer date” as used in section 605(b) of Pub. L. 111–203, set out above, see section 5301 of this title.]