---
kind: "section"
citation: "12 U.S.C. § 5366"
title: "12"
title_heading: "Banks and Banking"
number: "5366"
heading: "Early remediation requirements"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/5366"
units:
  - "Chapter 53 — Wall Street Reform and Consumer Protection"
  - "Subchapter I — Financial Stability"
  - "Part C — Additional Board of Governors Authority for Certain Nonbank Financial Companies and Bank Holding Companies"
---

# §5366. Early remediation requirements

- (a) **In general—** The [Board of Governors](/usc/12/5301.md?p=3), in consultation with the [Council](/usc/12/5301.md?p=8) and the [Corporation](/usc/12/5301.md?p=7), shall prescribe regulations establishing requirements to provide for the early remediation of financial distress of a [nonbank financial company supervised by the Board of Governors](/usc/12/5311.md?p=a-4-D) or a [bank holding company](/usc/12/5301.md?p=18-A) described in [section 5365(a) of this title](/usc/12/5365.md?p=a), except that nothing in this subsection authorizes the provision of financial assistance from the Federal Government.
- (b) **Purpose of the early remediation requirements—** The purpose of the early remediation requirements under [subsection (a)](#a) shall be to establish a series of specific remedial actions to be taken by a [nonbank financial company supervised by the Board of Governors](/usc/12/5311.md?p=a-4-D) or a [bank holding company](/usc/12/5301.md?p=18-A) described in [section 5365(a) of this title](/usc/12/5365.md?p=a) that is experiencing increasing financial distress, in order to minimize the probability that the [company](/usc/12/5381.md?p=a-5) will become insolvent and the potential harm of such insolvency to the financial stability of the United States.
- (c) **Remediation requirements—** The regulations prescribed by the [Board of Governors](/usc/12/5301.md?p=3) under [subsection (a)](#a) shall—
  - (1) define measures of the financial condition of the [company](/usc/12/5381.md?p=a-5), [including](/usc/12/5301.md?p=18-A) regulatory capital, liquidity measures, and other forward-looking indicators; and
  - (2) establish requirements that increase in stringency as the financial condition of the [company](/usc/12/5381.md?p=a-5) declines, [including](/usc/12/5301.md?p=18-A)—
    - (A) requirements in the initial stages of financial decline, [including](/usc/12/5301.md?p=18-A) limits on capital distributions, acquisitions, and asset growth; and
    - (B) requirements at later stages of financial decline, [including](/usc/12/5301.md?p=18-A) a capital restoration plan and capital-raising requirements, limits on transactions with [affiliates](/usc/12/5301.md?p=1), management changes, and asset sales.

## Source credit

(Pub. L. 111–203, title I, § 166, July 21, 2010, 124 Stat. 1432.)