---
kind: "section"
citation: "12 U.S.C. § 1831o–1"
title: "12"
title_heading: "Banks and Banking"
number: "1831o–1"
heading: "Source of strength"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/1831o-1"
units:
  - "Chapter 16 — Federal Deposit Insurance Corporation"
---

# §1831o–1. Source of strength

- (a) **Holding companies—** The [appropriate Federal banking agency](/usc/12/1813.md?p=q) for a [bank holding company](/usc/12/1813.md?p=w-2) or [savings and loan holding company](/usc/12/1813.md?p=w-3) shall require the [bank holding company](/usc/12/1813.md?p=w-2) or [savings and loan holding company](/usc/12/1813.md?p=w-3) to serve as a source of financial strength for any [subsidiary](/usc/12/1813.md?p=w-4) of the [bank holding company](/usc/12/1813.md?p=w-2) or [savings and loan holding company](/usc/12/1813.md?p=w-3) that is a [depository institution](/usc/12/1813.md?p=c-1).
- (b) **Other companies—** If an [insured depository institution](/usc/12/1813.md?p=c-2) is not the [subsidiary](/usc/12/1813.md?p=w-4) of a [bank holding company](/usc/12/1813.md?p=w-2) or [savings and loan holding company](/usc/12/1813.md?p=w-3), the [appropriate Federal banking agency](/usc/12/1813.md?p=q) for the [insured depository institution](/usc/12/1813.md?p=c-2) shall require any [company](/usc/12/1813.md?p=w-7) that directly or indirectly [controls](/usc/12/1813.md?p=w-5) the [insured depository institution](/usc/12/1813.md?p=c-2) to serve as a source of financial strength for such institution.
- (c) **Authority of State insurance regulator—**
  - (1) **In general—** The provisions of [section 1844(g) of this title](/usc/12/1844.md?p=g) shall apply to a [savings and loan holding company](/usc/12/1813.md?p=w-3) that is an insurance [company](/usc/12/1813.md?p=w-7), an [affiliate](/usc/12/1813.md?p=w-6) of an [insured depository institution](/usc/12/1813.md?p=c-2) that is an insurance [company](/usc/12/1813.md?p=w-7), and to any other [company](/usc/12/1813.md?p=w-7) that is an insurance [company](/usc/12/1813.md?p=w-7) and that directly or indirectly [controls](/usc/12/1813.md?p=w-5) an [insured depository institution](/usc/12/1813.md?p=c-2), to the same extent as the provisions of that section apply to a [bank holding company](/usc/12/1813.md?p=w-2) that is an insurance [company](/usc/12/1813.md?p=w-7).
  - (2) **Rule of construction—** Requiring a [bank holding company](/usc/12/1813.md?p=w-2) that is an insurance [company](/usc/12/1813.md?p=w-7), a [savings and loan holding company](/usc/12/1813.md?p=w-3) that is an insurance [company](/usc/12/1813.md?p=w-7), an [affiliate](/usc/12/1813.md?p=w-6) of an [insured depository institution](/usc/12/1813.md?p=c-2) that is an insurance [company](/usc/12/1813.md?p=w-7), or any other [company](/usc/12/1813.md?p=w-7) that is an insurance [company](/usc/12/1813.md?p=w-7) and that directly or indirectly [controls](/usc/12/1813.md?p=w-5) an [insured depository institution](/usc/12/1813.md?p=c-2) to serve as a source of financial strength under this section shall be deemed an action of the [Board](/usc/12/1861.md?p=b-3) that requires a [bank holding company](/usc/12/1813.md?p=w-2) to provide funds or other assets to a [subsidiary](/usc/12/1813.md?p=w-4) [depository institution](/usc/12/1813.md?p=c-1) for purposes of [section 1844(g) of this title](/usc/12/1844.md?p=g).
- (d) **Reports—** The [appropriate Federal banking agency](/usc/12/1813.md?p=q) for an [insured depository institution](/usc/12/1813.md?p=c-2) described in [subsection (b)](#b) may, from time to time, require the [company](/usc/12/1813.md?p=w-7), or a [company](/usc/12/1813.md?p=w-7) that directly or indirectly [controls](/usc/12/1813.md?p=w-5) the [insured depository institution](/usc/12/1813.md?p=c-2), to submit a report, under oath, for the purposes of—
  - (1) assessing the ability of such [company](/usc/12/1813.md?p=w-7) to comply with the requirement under [subsection (b)](#b); and
  - (2) enforcing the compliance of such [company](/usc/12/1813.md?p=w-7) with the requirement under [subsection (b)](#b).
- (e) **Rules—** Not later than 1 year after the transfer date, as defined in [section 5411 of this title](/usc/12/5411.md), the [appropriate Federal banking agencies](/usc/12/1813.md?p=q) shall jointly issue final rules to carry out this section.
- (f) **Definition—** In this section, the term “source of financial strength” means the ability of a [company](/usc/12/1813.md?p=w-7) that directly or indirectly owns or [controls](/usc/12/1813.md?p=w-5) an [insured depository institution](/usc/12/1813.md?p=c-2) to provide financial assistance to such [insured depository institution](/usc/12/1813.md?p=c-2) in the event of the financial distress of the [insured depository institution](/usc/12/1813.md?p=c-2).

## Source credit

(Sept. 21, 1950, ch. 967, § 2[38A], as added Pub. L. 111–203, title VI, § 616(d), July 21, 2010, 124 Stat. 1616; amended Pub. L. 114–113, div. O, title VII, § 706(a), Dec. 18, 2015, 129 Stat. 3029.)

## Notes

### Editorial Notes

### Amendments

2015—Subsecs. (c) to (f). Pub. L. 114–113 added subsec. (c) and redesignated former subsecs. (c) to (e) as (d) to (f), respectively.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective on the transfer date, see section 616(e) of Pub. L. 111–203, set out as an Effective Date of 2010 Amendment note under section 1467a of this title.