The Bank's Supervision and Regulation Department is responsible for processing various types of applications received from bank holding companies (BHC), savings and loan holding companies (SLHC) and state member banks. Examples of transactions by BHCs/SLHCs that require prior Federal Reserve System approval are:
- BHC/SLHC formations,
- bank and BHC acquisitions,
- thrift and SLHC acquisitions,
- nonbank activities or acquisitions,
- stock redemptions and
- declarations of financial holding company status.
Examples of state member bank transactions that require Federal Reserve System approval are:
- obtaining Federal Reserve System membership (for state-chartered banks),
- merging with another bank,
- establishing branches,
- making investment in the premises (in some instances),
- paying of dividends (in some instances),
- beginning to offer trust services and
- establishing a financial subsidiary.
Material changes in ownership for BHCs, SLHCs, financial holding companies and state member banks also may require prior approval of the Federal Reserve System. Most applications can be approved by a financial institution's Federal Reserve bank; however, applications that present significant issues or raise policy questions may require review and action by the Board of Governors in Washington, D.C.