12 CFR Part 265 — Rules Regarding Delegation of Authority

PART 265—RULES REGARDING DELEGATION OF AUTHORITY Authority: 12 U.S.C. 248(i) and (k). Source: 87 FR 54003, Sept. 1, 2022, unless otherwise noted. Subpart A—General Provisions § 265.1 Authority, purpose, and scope. (a) Pursuant to section 11(k) of the Federal Reserve Act (12 U.S.C. 248(k)), the Board of Governors of the Federal Reserve System (the Board) may delegate, by published order or rule, any of its functions other than those relating to rulemaking or pertaining principally to monetary and credit policies to Board members and employees, Reserve Banks, or administrative law judges. Pursuant to section 11(i) of the Federal Reserve Act (12 U.S.C. 248(i)), the Board may make all rules and regulations necessary to enable it to effectively perform the duties, functions, or services specified in that Act. Other provisions of Federal law also may authorize specific delegations by the Board. (b) This part details the functions that the Board has delegated. Subpart A contains general provisions pertaining to delegations of authority, including review of action taken pursuant to delegated authority. Subpart B contains the specific functions delegated to Board members, Board employees and the Federal Reserve Banks. Except as otherwise indicated in this part, the Board will review a delegated action only if a Board member, at his or her own initiative, requests a review. § 265.2 Delegation of functions generally. (a) The Board has determined to delegate authority to exercise the functions described in this part. (b) The Chair of the Board shall assign responsibility for performing such delegated functions. (c) Where a delegatee must act with the concurrence of a Board employee, or in consultation with a Board employee, that Board employee may subdelegate his or her authority to concur or be consulted on the delegated action to an employee within the same division or office. § 265.3 Board review of delegated actions. (a) Request by Board member. (b) Petition for review. (c) Notice of review. (d) By action of a delegatee. Subpart B—Delegations of Authority § 265.4 Functions delegated to Board members or staff within the Division of Board Members. (a) Chair. (1) Bank for International Settlements. (2) Term Deposit Facility (TDF). (3) Disclosures related to emergency lending programs. (i) Periodic reports to Congress under section 13(3)(C)(ii) of the Federal Reserve Act (12 U.S.C. 343(3)(C)(ii)) for the Bank Term Funding Program, Primary Dealer Credit Facility, Money Market Liquidity Facility, Commercial Paper Funding Facility, Paycheck Protection Program Liquidity Facility, Secondary Market Corporate Credit Facility, Municipal Liquidity Facility, Term Asset-Backed Securities Loan Facility, Main Street New Loan Facility, Main Street Expanded Loan Facility, Main Street Priority Loan Facility, Nonprofit Organization New Loan Facility, and Nonprofit Organization Expanded Loan Facility, and to approve technical or minor changes to the scope of information included in such reports; and (ii) Seven-day reports to Congress under section 13(3)(C)(i) of the Federal Reserve Act (12 U.S.C. 343(3)(C)(ii)). (b) Chair of the Committee on Supervision and Regulation. (1) To act on requests for extensions of State member banks' and bank holding companies' advanced approaches first floor period start dates that are consistent with previous exemptions approved by the Board and that do not raise additional significant policy issues. (2) [Reserved] (c) Chair of the Committee on Federal Reserve Bank Affairs. (d) Individual members. (1) Approval of amendments to notice of charges or cease and desist orders. (2) [Reserved] (3) Extension of time period for final Board action. (e) Exigent circumstances. (f) Three-member Action Committee. (1) Absence of quorum. (i) Relating to rulemaking; (ii) Pertaining principally to monetary and credit policies; and (iii) For which a statute expressly requires the affirmative vote of more than three Board members. (2) [Reserved] (g) Reports to Congress pursuant to the Small Business Regulatory Enforcement Fairness Act of 1996. [87 FR 54003, Sept. 1, 2022, as amended at 88 FR 32622, May 22, 2023; 91 FR 10745, Mar. 5, 2026] § 265.5 Functions delegated to the Secretary of the Board. The Secretary of the Board (or the Secretary's delegatee) is authorized: (a) Procedure Extension of time period for public participation in proposed regulations. (2) Extension of time period in notices, orders, rules, or regulations. (ii) Notwithstanding § 265.3, no person claiming to be adversely affected by any such extension of time by the Secretary shall have the right to petition the Board or any Board member for review or reconsideration of the extension. (3) Conforming citations and references in Board rules. (ii) To conform citations and references in Board rules with other regulatory or statutory changes adopted or promulgated by the Board or by the government or agencies of the United States. (4) Technical corrections in Board rules and regulations. (5) Procedural motions in administrative cases pending before the Board. (b) Availability of information Freedom of Information Act requests. (2) Review of denial of access to Board records; Freedom of Information Act and Privacy Act. (3) File reports of rulemakings with Congress and the Government Accountability Office. et seq. (c) Bank holding companies; savings and loan holding companies; change in bank control; mergers Reports on competitive factors in bank mergers. et seq., et seq. (2) Reserve Bank director interlocks. (3) [Reserved] (4) Savings and loan holding companies. (A) The appropriate Reserve Bank and relevant divisions of the Board recommend approval; and (B) No significant policy issue is raised on which the Board has not expressed its view. (ii) To grant a request to deregister as a savings and loan holding company pursuant to section 10(b)(6) of the Home Owners' Loan Act (12 U.S.C. 1467a(b)(6)) and § 238.4(d) of Regulation LL (12 CFR 238.4(d)). (d) International banking Acquisition of foreign company or U.S. company financing exports. et seq. (i) The appropriate Reserve Bank and all relevant divisions of the Board's staff recommend approval; (ii) No significant policy issue is raised on which the Board has not expressed its view; (iii) The acquisition does not result, either directly or indirectly, in the bank, corporation, or bank holding company acquiring effective control of the company, except that this condition need not be met if: (A) The company is to perform nominee, fiduciary, or other services incidental to the activities of a foreign branch or affiliate of the bank holding company, or corporation; or (B) The stock is being acquired from the parent bank, parent bank holding company, subsidiary Edge corporation, or subsidiary agreement corporation, as the case may be, and the selling entity holds the stock with the consent of the Board pursuant to Regulation K or Y (12 CFR parts 211 or 225), as applicable. (2) [Reserved] (e) Member banks Waiver of penalty for early withdrawals of time deposits. (i) The President declares an area of major disaster or emergency area pursuant to section 301 of the Disaster Relief Act of 1974 (42 U.S.C. 5141); (ii) The waiver is limited to depositors suffering disaster or emergency related losses in the officially designated area; and (iii) The appropriate Reserve Bank and all relevant divisions of the Board's staff recommend approval. (2) [Reserved] (f) Location of institution. (1) The relevant Federal Reserve Banks and the institution agree on the specific Reserve Bank in which the institution should hold stock or with which the institution should maintain reserve balances; and (2) The agreed-upon location does not raise any significant policy issues. [87 FR 54003, Sept. 1, 2022, as amended at 91 FR 10745, Mar. 5, 2026] § 265.6 Functions delegated to the General Counsel. The General Counsel (or the General Counsel's delegatee) is authorized: (a) Procedure Reconsideration of Board action. (2) Public meetings. (3) Designation of Board counsel for hearings. (b) Availability of Information Board records. (2) Disclosure to foreign authorities. (3) Assistance to foreign authorities. (i) Whether the requesting authority has agreed to provide reciprocal assistance with respect to banking matters within the jurisdiction of any appropriate Federal banking agency; (ii) Whether compliance with the request would prejudice the public interest of the United States; and (iii) Whether the request is consistent with the requirement that the Board conduct any such investigation in compliance with the laws of the United States and the policies and procedures of the Board. (c) Bank holding companies; savings and loan holding companies; change in bank control; mergers Control determinations under section 4(c)(8) of the Bank Holding Company Act. (2) Data processing. (3) Notices under the Change in Bank Control Act. (d) Management interlocks General exemptions. (2) Legacy management interlocks. (e) Enforcement actions. (1) To enter into a cease-and-desist order, removal and prohibition order, or civil money penalty assessment order with a bank holding company or any nonbanking subsidiary thereof, with a State member bank, with a savings and loan holding company, or with any other person or entity subject to the Board's jurisdiction under section 8(b) or (e) of the Federal Deposit Insurance Act (12 U.S.C. 1818(b) or (e)), when the order has been consented to by the institution or individual subject to the order; or to issue a notice suspending or prohibiting an institution-affiliated party under section 8(g) of the Federal Deposit Insurance Act (12 U.S.C. 1818(g)) when the notice has been consented to by the individual subject to the notice; (2) To stay, modify, terminate, or suspend an order or notice issued pursuant to paragraph (e)(1) of this section. (3) To grant consent to a person subject to an order of removal and/or prohibition or suspension notice or order issued by the Board or other Federal financial institutions regulatory agency to become an institution-affiliated party of, to otherwise participate in the conduct of the affairs of, or to take an action with respect to any voting rights in, any Board-supervised institution or entity. (4) To take, or authorize designated persons to take actions permitted under 12 U.S.C. 1818(n), 1820(c), and 12 U.S.C. 1844(f), including administering oaths and affirmations, taking depositions, and issuing, revoking, quashing, or modifying subpoenas duces tecum. (f) International banking After-the-fact applications. (i) The foreign bank would be required to file an after-the-fact application for the Board's approval under § 211.24(a)(6) of Regulation K (12 CFR 211.24(a)(6)); or (ii) The General Counsel may waive the requirement for an after-the-fact application if: (A) The surviving foreign bank commits to wind down the U.S. operations of the acquired foreign bank; and (B) The merger or consolidation raises no significant policy or supervisory issues. (2) To modify the requirement that a foreign bank that has submitted an application or notice to establish a branch, agency, commercial lending company, or representative office pursuant to § 211.24(a) of Regulation K (12 CFR 211.24(a)) shall publish notice of the application or notice in a newspaper of general circulation in the community in which the applicant or notificant proposes to engage in business, as provided in § 211.24(b)(2) of Regulation K (12 CFR 211.24(b)(2)). (3) With the concurrence of the Director of the Division of Supervision and Regulation, to grant a request for an exemption under section 4(c)(9) of the Bank Holding Company Act (12 U.S.C. 1843(c)(9)), provided that the request raises no significant policy or supervisory issues that the Board has not already considered. (4) To return applications and notices filed under the International Banking Act for informational deficits. (5) To determine that an entity qualifies as a “special-purpose foreign government-owned bank” for purposes of § 211.24(d)(3) of Regulation K (12 CFR 211.24(d)(3)). (g) Conflicts of interest waivers. (h) Deregistration requests. (i) Small entity compliance guides. (j) Internal debt conversion triggers. (1) The conversion trigger does not include any conditions for triggering the conversion other than the issuance of an internal debt conversion order by the Board; (2) The instruments governing the long-term debt and related documents mitigate any impediments to conversion of the long-term debt into equity capital; (3) The conversion trigger provides for the conversion of the long-term debt into common equity tier 1 capital; (4) The conversion trigger requires the conversion of long-term debt in the amount specified by the Board's internal debt conversion order; and (5) Upon conversion of long-term debt pursuant to the conversion trigger, the converted long-term debt would no longer remain outstanding as a liability of the Covered IHC. (k) Section 19 of the Federal Deposit Insurance Act. (l) Section 106 of the Bank Holding Company Act Amendments of 1970. [87 FR 54003, Sept. 1, 2022, as amended at 88 FR 80109, Nov. 17, 2023; 91 FR 10745, Mar. 5, 2026] § 265.7 Functions delegated to the Director of the Division of Supervision and Regulation. The Director of the Division of Supervision and Regulation (or the Director's delegatee) is authorized: (a) Procedure Cease and desist orders. (2) Modification of commitments or conditions. (3) Processing extensions. (i) The 60-day processing period for an acquisition of a bank or bank holding company filed under section 3 of the Bank Holding Company Act (12 U.S.C. 1842), pursuant to § 225.15(d)(2) of Regulation Y (12 CFR 225.15(d)(2)); (ii) The 60-day processing period for a nonbanking proposal filed under section 4 of the Bank Holding Company Act (12 U.S.C. 1843), pursuant to: (A) Section 225.24(d)(2) of Regulation Y (12 CFR 225.24(d)(2)); and (B) Section 4(j)(1)(C) of the Bank Holding Company Act (12 U.S.C. 1843(j)(1)(C)) and § 225.24(d)(3) of Regulation Y (12 CFR 225.24(d)(3)); (iii) The 60-day processing period for an acquisition of a savings association or savings and loan holding company filed under section 10(e) of the Home Owners' Loan Act (12 U.S.C. 1467a(e)), pursuant to § 238.14(g)(2) of Regulation LL (12 CFR 238.14(g)(2)); (iv) The 60-day processing period for a nonbanking proposal filed under section 10(c) of the Home Owners' Loan Act (12 U.S.C. 1467a(c)), pursuant to: (A) Section 238.53(f)(2) of Regulation LL (12 CFR 238.53(f)(2)); and (B) Section 238.53(f)(3) of Regulation LL (12 CFR 238.53(f)(3)); and (v) For an additional 180 days, the 180-day period within which final Board action is required on an application pursuant to section 7(d) of the International Banking Act (12 U.S.C. 3105(d)). (4) Notice of insufficient capital. (5) Obtaining possession or control of securities; extending time period. (b) Availability of information Confidential supervisory information. (2) Freedom of Information Act; availability of information. (c) Bank holding companies; savings and loan holding companies; financial holding companies; change in bank control; mergers Bank holding company and savings and loan holding company registration forms and annual reports. (2) Emergency action. (3) Waiver of notice. (4) Notices for addition or change of directors or officers. (i) To determine the informational sufficiency of notices filed pursuant to § 225.72 of Regulation Y (12 CFR 225.72) or § 238.73 of Regulation LL (12 CFR 238.73); and (ii) To waive the prior notice requirements of that section. (5) ERISA violations. et seq. (6) Appraisal not required. (7) Financial holding company corrective action agreements. (i) To acquire shares of a company pursuant to authority in section 4(k) of the Bank Holding Company Act (12 U.S.C. 1843(k)) in order to continue to engage in the following categories of existing activities which require recurring transactions in the ordinary course: (A) Merchant banking, (B) Underwriting dealing in, or making a market in securities; (C) Sponsoring, organizing, and managing customer-driven investment funds; and (D) Hedging risks incurred in ongoing permissible activities; (ii) To extend the time within which a financial holding company must execute a corrective agreement under section 4(m) of the Bank Holding Company Act (12 U.S.C. 1843(m)); (iii) To extend the time limits in, or otherwise modify, corrective agreements under section 4(m) of the Bank Holding Company Act (12 U.S.C. 1843(m)); (iv) To determine not to make public any corrective agreement under section 4(m) of the Bank Holding Company Act (12 U.S.C. 1843(m)); and (v) To acquire shares or assets pursuant to section 4(k) of the Bank Holding Company Act (12 U.S.C. 1843(k)) without prior Board approval up to the following thresholds: (A) $25 million in consideration for a single transaction; (B) $125 million in consideration over the past 12 months; and (C) $400 million in consideration over the entire period the financial holding company is subject to the agreement required by section 4(m) of the Bank Holding Company Act (12 U.S.C. 1843(m)). (8) Complementary physical commodity trading activities. (9) Extension of merchant banking investment holding periods. (10) Single-counterparty credit limits rule exemptions. (11) Stress tests. (A) To develop and issue scenarios, including, but not limited to, the baseline scenario and the severely adverse scenario, that the Board would use to conduct analyses under § 238.132 of Regulation LL (12 CFR 238.132) or § 252.44 of Regulation YY (12 CFR 252.44) and that a company would use to conduct its stress tests under § 238.143 of Regulation LL (12 CFR 238.143) or § 252.14 or § 252.54 of Regulation YY (12 CFR 252.14 or 252.54), as appropriate, provided that no significant policy issues are raised; and (B) To develop and issue additional scenarios or additional components for use in the severely adverse scenario under §§ 238.132(b) and 238.143(b)(2) and (3) of Regulation LL (12 CFR 238.132(b) and 238.143(b)(2) and (b)(3)), and §§ 252.14(b)(2) and (3), 252.44(b), and 252.54(b)(2) and (b)(3) of Regulation YY (12 CFR 252.14(b)(2) and (3), 252.44(b), and 252.54(b)(2) and (3)), that the Board would use to conduct analyses under § 238.132 of Regulation LL (12 CFR 238.132) or § 252.44 of Regulation YY (12 CFR 225.44) and that a company would use to conduct its stress tests under § 238.143 of Regulation LL (12 CFR 238.143) or § 252.14 or § 252.54 of Regulation YY (12 CFR 252.14 or 252.54), as appropriate, provided that no significant policy issues are raised; (ii) With the concurrence of the Chair of the Committee on Supervision and Regulation: (A) After consultation with the Board, to convey to a company the summary of the results of the Board's analyses of the company under § 238.134 of Regulation LL (12 CFR 238.134) or § 252.46 of Regulation YY (12 CFR 252.46); (B) After consultation with the Board and the Director of the Division of Financial Stability, to determine the content and timing of the public disclosure of the results of the Board's analyses of a company under § 238.134 of Regulation LL (12 CFR 238.134) or § 252.46 of Regulation YY (12 CFR 252.46); (C) To determine any appropriate updates to a company's resolution plan based on the results of the Board's analyses of the company under § 252.47 of Regulation YY (12 CFR 252.47); and (D) To require a company to include one or more additional components in its severely adverse scenario in its stress test based on the company's financial condition, size, complexity, risk profile, scope of operations, or activities, or risks to the U.S. economy pursuant to § 238.143(b)(2) of Regulation LL (12 CFR 238.143(b)(2)) and §§ 252.14(b)(2) and 252.54(b)(2) of Regulation YY (12 CFR 252.14(b)(2) and 252.54(b)(2)); (iii) After consultation with the Chair of the Committee on Supervision and Regulation: (A) To evaluate whether a company has the capital necessary to absorb losses and continue its operation under baseline and severely adverse scenarios, and any additional scenarios, under § 238.134 of Regulation LL (12 CFR 238.134) or § 252.46 of Regulation YY (12 CFR 252.46); (B) To conduct annual analyses of a company under § 238.132 of Regulation LL (12 CFR 238.132) or § 252.44 of Regulation YY (12 CFR 252.44); and (C) To require a company with significant trading activity, as specified in the Capital Assessments and Stress Testing report (FR Y-14), or a subsidiary of such company, to include a trading and counterparty component in its severely adverse scenario in its stress test pursuant to § 238.143(b)(2) of Regulation LL (12 CFR 238.143(b)(2)) and §§ 252.14(b)(2) and 252.54(b)(2) of Regulation YY (12 CFR 252.14(b)(2) and 252.54(b)(2)); (iv) In consultation with the General Counsel, to respond to a company's request for reconsideration that the company is required to include one or more additional components in its severely adverse scenario, including a trading or counterparty component, or to use one or more additional scenarios under § 238.143(b)(4) of Regulation LL (12 CFR 238.143(b)(4)) and §§ 252.14(b)(4) and 252.54(b)(4) of Regulation YY (12 CFR 252.14(b)(4) and 252.54(b)(4)); and (v) The Director of the Division of Supervision and Regulation is also authorized to: (A) Notify a company of the determination that the company is required to include one or more additional components in its severely adverse scenario, including a trading or counterparty component, or to use one or more additional scenarios under § 238.143(b)(4) of Regulation LL (12 CFR 238.143(b)(4)) and §§ 252.14(b)(4) and 252.54(b)(4) of Regulation YY (12 CFR 252.14(b)(4) and 252.54(b)(4)); (B) Coordinate with the appropriate primary financial regulatory agencies in conducting the analyses under § 238.132 of Regulation LL (12 CFR 238.132) or § 252.44 of Regulation YY (12 CFR 252.44); (C) Provide the as-of date of any scenarios, additional scenarios, additional components, and the relevant data under § 238.143(b) of Regulation LL (12 CFR 238.143(b)), or § 252.14(b) or § 252.54(b) of Regulation YY (12 CFR 252.14(b) or 252.54(b)), as appropriate; (D) Extend (and in the case of nonbank financial companies supervised by the Board or savings and loan holding companies, accelerate) the compliance date for companies under § 238.131 or § 238.142 of Regulation LL (12 CFR 238.131 or 238.142), or § 252.13, § 252.43, or § 252.53 of Regulation YY (12 CFR 252.13, 252.43, or 252.53), as appropriate; (E) Extend any or all of the following time periods: ( 1 ( 2 ( 3 (F) Require a company to submit additional information on a consolidated basis pursuant to § 238.133 of Regulation LL (12 CFR 238.133) or § 252.45 of Regulation YY (12 CFR 252.45) that the Director determines necessary to ensure that the Board has sufficient information to conduct its analysis under § 238.132 of Regulation LL (12 CFR 238.132) or § 252.44 of Regulation YY (12 CFR 252.44) or as necessary to project a company's pro forma financial condition; (G) Require a company to submit additional information under § 238.145 of Regulation LL (12 CFR 238.145), or § 252.16 or § 252.57 of Regulation YY (12 CFR 252.16 or 252.57), as appropriate; and (H) Determine that disclosures made by a bank holding company do not adequately capture the potential impact of scenarios on the capital of a State member bank pursuant to § 252.17 of Regulation YY (12 CFR 252.17) and require that the State member bank make the same disclosure as required for State member banks that are not subsidiaries of bank holding companies. (12) Volcker Rule conformance period extensions. (d) International banking Foreign bank reports. (2) Edge corporation reports. (3) International banking matters. (4) Allocated transfer risk reserves. (5) Conduct and coordination of examinations. (6) Election by a foreign bank to be treated as financial holding company. (i) The foreign bank meets the criteria for becoming or being treated as a financial holding company; and (ii) The election raised no significant policy or supervisory issues. (7) Enhanced prudential standards rule for foreign banking organizations. (ii) In consultation with the General Counsel, to: (A) Commitments. (B) Stress testing. 1 ( 2 ( 3 ( 4 (C) Capital. (D) Risk management. (E) Liquidity. 1 ( 2 (F) Additional information. (e) Member banks Membership certification to FDIC. (2) Dollar exchange. (3) ERISA violations. et seq. (4) Examiners. (5) Capital stock reduction; branch applications; declaration of dividends; investment in bank premises. (6) Security devices. (7) Public welfare investments. (ii) To determine, in connection with acting on a proposal pursuant to delegated authority as set forth in paragraph (e)(7)(i) of this section, that the aggregate amount of a State member bank's public welfare investments will not pose a significant risk to the deposit insurance fund in accordance with section 9(23) of the Federal Reserve Act (12 U.S.C. 338a). (8) Prior approval for capital distributions. (9) Bank-affiliate transactions. (i) Part of a one-time corporate reorganization; (ii) Does not involve the purchase of low-quality assets; (iii) Is accompanied by a commitment to repurchase any assets that have become low quality within two years of the transfer; and (iv) Has been approved by the Federal Deposit Insurance Corporation and the institution's appropriate Federal banking agency. (f) Securities Registration statements by member banks. l (i) To accelerate the effective date of a registration statement filed by a member bank with respect to its securities; (ii) To accelerate termination of the registration of a security that is no longer held of record by 300 persons; and (iii) To extend the time for filing a registration statement by a member bank. (2) Exemption from registration. l (3) Accelerating registration of security on national securities exchange. l (4) Unlisted trading in security of a State member bank. l (5) Transfer agent registration; acceleration; withdrawal or cancellation. (ii) To withdraw or cancel, under section 17A(c)(3)(C) of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78q-1(c)(4)(B)), the transfer agent registration of a member bank or a subsidiary thereof, a bank holding company, or a subsidiary thereof that is a bank as defined in section 3(a)(6) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(6)) other than a bank specified in clause (i) or (iii) of section 3(a)(34)(B) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(34)(B)), that has filed a written notice of withdrawal with the Board or upon a finding that such transfer agent is no longer in existence or has ceased to do business as a transfer agent. (6) Proxy solicitation; financial statements. (ii) To permit the omission of financial statements from reports by a State member bank, or to require other financial statements in addition to, or in substitution for, the statements required therein under § 208.36 of Regulation H (12 CFR 208.36). (7) Municipal securities dealers. (i) To grant or deny requests for waiver of examination and waiting period requirements for municipal securities principals and representatives under Municipal Securities Rulemaking Board Rule G-3; (ii) To grant or deny requests for a determination that a natural person or municipal securities dealer subject to a statutory disqualification is qualified to act as a municipal securities representative or dealer under Municipal Securities Rulemaking Board Rule G-4; (iii) To approve or disapprove clearing arrangements under Municipal Securities Rulemaking Board Rule G-8, in connection with the administration of these rules for municipal securities dealers for which the Board is the appropriate regulatory agency under section 3(a)(34) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(34)). (8) Making reports available to SEC. (9) Issuing examination manuals, forms, and other materials. (10) Lists of OTC and foreign margin stocks. (g) Golden parachute payments. (h) Prompt corrective action. (1) Capital categories, capital restoration plans, and discretionary supervisory actions pursuant to §§ 208.42 through 208.44 of Regulation H (12 CFR 208.42 through 208.44); (2) Notices and directives pursuant to § 263.202 of the Board's Rules of Practice for Hearings (12 CFR 263.202); (3) Reclassification of a capital category based on criteria other than capital pursuant to § 263.203 of the Board's Rules of Practice for Hearings (12 CFR 263.203); and (4) Dismissal of directors or senior officers pursuant to § 263.204 of the Board's Rules of Practice for Hearings (12 CFR 263.204). (i) Assessments for bank holding companies, savings and loan holding companies, and nonbank financial companies supervised by the Board. (j) Capital plans. (i) To allow a bank holding company or savings and loan holding company to submit its capital plan after the 5th of January of a given year; (ii) To object, in whole or in part, to the capital plan or provide the bank holding company or savings and loan holding company with a notice of non-objection to the capital plan; (iii) To direct a bank holding company or savings and loan holding company to revise and resubmit its capital plan if: (A) The capital plan is incomplete; (B) There has been or will be a material change in the bank holding company's or savings and loan holding company's risk profile, financial condition, or corporate structure; (C) The stressed scenarios developed by the bank holding company or savings and loan holding company are not sufficiently stressed; or (D) The capital plan or bank holding company or savings and loan holding company raise any issues that would cause the Board or the Reserve Bank to object to the capital plan; (iv) To waive the requirement that a bank holding company or savings and loan holding company resubmit its entire capital plan with respect to those portions of the plan that are unchanged; (v) To extend or shorten the 30-day period for resubmission of a capital plan; (vi) To determine that a bank holding company or savings and loan holding company is required to obtain prior approval for a capital distribution that would result in a material adverse change to the organization's capital or liquidity structure or because earnings were materially underperforming projections; (vii) To notify a bank holding company or savings and loan holding company in writing that it may not take advantage of the prior approval exception for well-capitalized bank holding companies or savings and loan holding companies; or (viii) To approve or disapprove, within 30 days of receipt of a complete request, a proposed capital distribution; and (ix) To affirm or withdraw objection to a capital plan based on a bank holding company's or savings and loan holding company's written request to reconsider an objection to a capital plan. (2) With the concurrence of the Chair of the Committee on Supervision and Regulation, and after consultation with the Board and the Director of the Division of Financial Stability, to determine the content and timing of the public disclosure of the Board's decision to object or not object to a bank holding company's or savings and loan holding company's capital plan and the summary of the Board's analyses of that company, under § 225.8 of Regulation Y (12 CFR 225.8). (3) Jointly with the Director of the Division of Financial Stability, with the concurrence of the Vice Chair for Supervision: (i) To provide a firm subject to the Board's capital plan rules with notice of its stress capital buffer requirement and an explanation of the results of the supervisory stress test pursuant to §§ 225.8(h)(1) of Regulation Y (12 CFR 225.8(h)(1)) and 238.170(h)(1) of Regulation LL (12 CFR 238.170(h)(1)); and (ii) To provide a firm subject to the Board's capital plan rules with its final stress capital buffer requirement and confirmation of its final planned capital distributions pursuant to §§ 225.8(h)(4)(i) of Regulation Y (12 CFR 225.8(h)(4)(i)) and 238.170(h)(4)(i) of Regulation LL (12 CFR 238.170(h)(4)(i)). (k) Capital adequacy Delegations regarding the general provisions of subpart A of Regulation Q (12 CFR part 217, subpart A). (A) To determine under § 217.1(d)(2)(ii) of Regulation Q (12 CFR 217.1(d)(2)(ii)) whether a capital element may be included in a company's common equity tier 1 capital, additional tier 1 capital, or tier 2 capital consistent with the loss absorption capacity of the element and in accordance with § 217.20(e) of Regulation Q (12 CFR 217.20(e)); and (B) To determine under the definition of “financial institution” in § 217.2 of Regulation Q (12 CFR 217.2) whether a company is a financial institution based on its activities. (ii) After consultation with the General Counsel: (A) To require under § 217.1(d)(1) of Regulation Q (12 CFR 217.1(d)(1)) a company to hold an amount of regulatory capital greater than otherwise required under Regulation Q because the company's capital requirements under Regulation Q are not commensurate with the company's credit, market, operational or other risks; (B) To determine under § 217.1(d)(2)(i) of Regulation Q (12 CFR 217.1(d)(2)(i)) whether an element of capital must be excluded in whole or in part from capital because the capital element has characteristics or terms that diminish its ability to absorb losses, or otherwise presents safety and soundness concerns; (C) To require under § 217.1(d)(3) of Regulation Q (12 CFR 217.1(d)(3)) that a company assign a different risk-weighted asset amount to an exposure or deduct the amount of the exposure from its regulatory capital because the risk-weighted asset amount calculated under Regulation Q for the exposure is not commensurate with the risks associated with the exposure; (D) To determine under § 217.1(d)(4) of Regulation Q (12 CFR 217.1(d)(4)) whether the leverage exposure amount, or the amount reflected in a company's reported average total consolidated assets, for an on- or off-balance sheet exposure (under § 217.10 of Regulation Q (12 CFR 217.10)) is inappropriate for the exposure(s) or the circumstances of the company, and, based on this determination, require the company to adjust this amount in the numerator and the denominator for purposes of the company's leverage ratio calculations; (E) To determine under § 217.1(d)(5) of Regulation Q (12 CFR 217.1(d)(5)) whether the risk-based capital treatment for an exposure, or the treatment provided to an entity that is not consolidated on a company's balance sheet, is commensurate with the risk of the exposure and the relationship of the company to the entity, and, based on this determination, require the company to treat the exposure or entity as if it were consolidated on the company's balance sheet; (F) With respect to any deduction or limitation required under Regulation Q, to require under § 217.1(d)(6) of Regulation Q (12 CFR 217.1(d)(6)) a different deduction or limitation provided that such alternative deduction or limitation is commensurate with the company's risk and consistent with safety and soundness; (G) To approve a request by a Board-regulated institution to make or change an election, or a choice of treatment, under § 217.1(g)(2)(ii) of Regulation Q (12 CFR 217.1(g)(2)(ii)); and (H) To review and adjust estimated total consolidated assets under the definition of “insurance bank holding company” or “insurance savings and loan holding company” in § 217.2 of Regulation Q (12 CFR 217.2) or under § 217.601(b)(2) of Regulation Q (12 CFR 217.601(b)(2)). (iii)(A) To determine under paragraph (5) of the definition of “distribution” in § 217.2 of Regulation Q (12 CFR 217.2) whether a transaction is in substance a distribution of capital; (B) To act on a request from a company under the definition of “eligible credit derivative” in § 217.2 of Regulation Q (12 CFR 217.2) to find that a credit derivative (other than a credit default swap, nth-to-default swap, or total return swap) should be considered an eligible credit derivative; (C) To determine under the definition of “main index” in § 217.2 of Regulation Q (12 CFR 217.2) whether an index is a main index because the equities represented by the index have comparable liquidity, depth of market, and size of bid-ask spreads as equities in the Standard & Poor's 500 Index and FTSE All-World Index; (D) To determine under the definition of “multilateral development bank” in § 217.2 of Regulation Q (12 CFR 217.2) whether a multilateral lending institution or regional development bank poses a comparable credit risk to other multilateral development banks; (E) To determine under the definition of “qualifying central counterparty” in § 217.2 of Regulation Q (12 CFR 217.2) whether a central counterparty meets the requirements for qualification as a qualifying central counterparty; (F) To determine under paragraph (8) of the definition of “traditional securitization” in § 217.2 of Regulation Q (12 CFR 217.2) whether a transaction is not a traditional securitization based on the transaction's leverage, risk profile, or economic substance; and (G) To determine under paragraph (9) of the definition of “traditional securitization” in § 217.2 of Regulation Q (12 CFR 217.2) whether a transaction is a traditional securitization based on the transaction's leverage, risk profile, or economic substance. (2) Delegation regarding the capital ratio requirements and buffers in subpart B of Regulation Q (12 CFR part 217, subpart B). (3) Delegations regarding the definition of capital in subpart C of Regulation Q (12 CFR part 217, subpart C). (ii)(A) To determine under § 217.20(c)(1)(v)(C) and (d)(1)(v)(C) of Regulation Q (12 CFR 217.20(c)(1)(v)(C) and (d)(1)(v)(C)) whether a company would continue to hold capital commensurate to its risk following the exercise of a call option; (B) To consult with the other banking agencies under § 217.20(e)(2) of Regulation Q (12 CFR 217.20(e)(2)) when considering whether a company may include a regulatory capital element in its common equity tier 1 capital, additional tier 1 capital, or tier 2 capital; (C) To make publicly available under § 217.20(e)(3) of Regulation Q (12 CFR 217.20(e)(3)) a decision that a regulatory capital element may be included in a company's common equity tier 1 capital, additional tier 1 capital, or tier 2 capital; (D) To determine under § 217.22(a)(5)(i) of Regulation Q (12 CFR 217.22(a)(5)(i)) whether the deduction of a defined benefit pension fund net asset is not required to the extent that the company has unrestricted and unfettered access to the assets in the fund; (E) To act on a request from a company under § 217.22(b)(2)(iv) of Regulation Q (12 CFR 217.22(b)(2)(iv)) to change to its AOCI opt-out election following a merger, acquisition, or purchase transaction; (F) To act on a request from a company under § 217.22(c)(4), (5), or (6) or (d)(2)(i)(C) of Regulation Q (12 CFR 217.22(c)(4), (5), or (6) or (d)(2)(i)(C)) not to deduct investments in the capital of an unconsolidated financial institution either: ( 1 ( 2 (G) To act on a request from a company under § 217.22(d)(1)(iv) or (d)(2)(iii) of Regulation Q (12 CFR 217.22(d)(1)(iv) or (d)(2)(iii)) to change its election whether to exclude DTAs and DTLs relating to adjustments made to common equity tier 1 capital; (H) To act on a request from a company under § 217.22(e)(5) of Regulation Q (12 CFR 217.22(e)(5)) to change its preference regarding the manner in which it nets DTLs against specific assets subject to deduction; (I) To act on a request from a company under § 217.22(h)(2)(iii)(A) of Regulation Q (12 CFR 217.22(h)(2)(iii)(A)) to use a conservative estimate of the amount of its investment in its own capital instruments or the capital of an unconsolidated financial institution held through a position in an index; and (J) To determine under § 217.22(h)(3)(iii)(C) of Regulation Q (12 CFR 217.22(h)(3)(iii)(C)) whether a company's internal control process is adequate. (iii)(A) To act on a company's request under § 217.20(b)(1)(iii), (c)(1)(vi), or (d)(1)(x) of Regulation Q (12 CFR 217.20(b)(1)(iii), (c)(1)(vi), (d)(1)(x)) to redeem a security; and (B) To act on a company's request under § 217.20(c)(1)(v)(A) or (d)(1)(v)(A) of Regulation Q (12 CFR 217.20(c)(1)(v)(A), (d)(1)(v)(A)) to exercise a call option. (4) Delegations regarding the standardized approach in subpart D of Regulation Q CCP (ii)(A) To determine under § 217.35(d)(1) of Regulation Q (12 CFR 217.35(d)(1)) whether there has been a material change in the financial condition of a CCP; (B) To act on a request under § 217.35(d)(2) of Regulation Q (12 CFR 217.35(d)(2)) for a company to use a risk-weighted asset amount for default fund contributions to a CCP that is not QCCP other than a 1,250 percent risk weight; and (C) In the case of a system-wide failure of a settlement or clearing system, or a CCP, to waive under § 217.38(c) of Regulation Q (12 CFR 217.38(c)) risk-based capital requirements for unsettled and failed transactions. (iii)(A) To act on a request from a company under § 217.37(c) of Regulation Q (12 CFR 217.37(c)) to use its own estimates of haircuts, including: ( 1 ( 2 (B) To determine under § 217.41(c) of Regulation Q (12 CFR 217.41(c)) whether or not a company has demonstrated a comprehensive understanding of the features of a securitization exposure. (5) Delegations regarding the advanced approaches risk-based capital rules in subpart E of Regulation Q (ii) After consultation with the General Counsel: (A) To require a company (that no longer meets the qualification requirements in subpart E of Regulation Q (12 CFR part 217, subpart E)) under § 217.123(b)(3) of Regulation Q (12 CFR 217.123(b)(3)) to calculate its advanced approaches total risk-weighted assets with modifications determined by the Director if the Director determines that the advanced approaches total risk-weighted assets are not commensurate with the company's credit, market, operational, or other risk; and (B) To determine under § 217.133(d)(3)(i) of Regulation Q (12 CFR 217.133(d)(3)(i)) that a risk weight higher than 20 percent for variable RW in formula K ccp (iii)(A) To determine under § 217.100(c)(1) of Regulation Q (12 CFR 217.100(c)(1)) that not applying a provision of Regulation Q would, in all circumstances, unambiguously generate a risk-based capital requirement for each such exposure greater than that which would otherwise be required; (B) To determine that a non-U.S. subsidiary of a U.S. company may use the retail definition of default defined in a non-U.S. jurisdiction under the definition of “default” in § 217.101 of Regulation Q (12 CFR 217.101); (C) To determine for purposes of the definition of eligible double default guarantor in § 217.101 of Regulation Q (12 CFR 217.101) whether the guarantor is subject to consolidated supervision and regulation comparable to that imposed on U.S. depository institutions or securities broker-dealers; (D) To extend any of the following periods: ( 1 ( 2 ( 3 (E) To assess compliance with any supervisory guidance on qualification requirements for purposes of § 217.121(b)(1) of Regulation Q (12 CFR 217.121(b)(1)); (F) To waive the requirement under § 217.121(b)(2) of Regulation Q (12 CFR 217.121(b)(2)) that a company submit a parallel run implementation plan to the Board at least 60 days before it proposes to begin its parallel run; (G) To act on a request by a company under § 217.122(g)(2)(ii)(A)( 1 1 (H) To act on a request by a company under § 217.122(g)(2)(ii)(A)( 3 3 (I) To act on a request by a company under § 217.122(g)(3)(i)(D) of Regulation Q (12 CFR 217.122(g)(3)(i)(D)) to use internal estimates of dependence among operational losses across and within units of measure; (J) To act on a request by a State member bank under § 217.122(g)(3)(ii) of Regulation Q (12 CFR 217.122(g)(3)(ii)) to generate an estimate of the company's operational risk exposure using an alternative approach to that specified in § 217.122(g)(3)(i) of Regulation Q (12 CFR 217.122(g)(3)(i)); (K) To determine under § 217.123(b) of Regulation Q (12 CFR 217.123(b)) that a company that has conducted a satisfactory parallel run fails to comply with the qualification requirements in § 217.122 of Regulation Q (12 CFR 217.122) and notify the company in writing of the determination; (L) To determine under § 217.123(b) of Regulation Q (12 CFR 217.123(b)) whether a company's plan to return to compliance with the qualification requirements in § 217.122 of Regulation Q (12 CFR 217.122) is satisfactory; (M) To establish requirements under § 217.131(e)(1)(i) of Regulation Q (12 CFR 217.131(e)(1)(i)) for the estimation of a margin loan's probability of default (“PD”) and loss given default (“LGD”); (N) In the case of a system-wide failure of a settlement or clearing system, or a central counterparty, to waive under § 217.136(c) of Regulation Q (12 CFR 217.136(c)) risk-based capital requirements for unsettled and failed transactions; and (O) To act on a request by a company under § 217.161(b)(2) of Regulation Q (12 CFR 217.161(b)(2)) to use operational risk mitigants other than insurance. (iv)(A) To act on a request for approval of any model or optional approach available under subpart E of Regulation Q (12 CFR part 217, subpart E), including without limitation: ( 1 ( i 5 5 ( ii 6 6 ( iii ( iv ( v ( vi ( vii ( viii ( ix ( x ( xi ( xii MKT ( xiii Stressed ( 2 ( i ( ii ( 3 ( 4 ( 5 (B) To determine under § 217.131(e)(4) of Regulation Q (12 CFR 217.131(e)(4)) whether a portfolio of exposures is or is not material; and (C) To assess for purposes of § 217.141(c)(1) of Regulation Q (12 CFR 217.141(c)(1)) whether a company has a comprehensive understanding of the features of a securitization exposure that would materially affect the performance of the exposure. (6) Delegations regarding the market risk rule in subpart F of Regulation Q (ii) After consultation with the General Counsel, to require a company: (A) Under § 217.201(c)(1) of Regulation Q (12 CFR 217.201(c)(1)) to hold an amount of capital greater than otherwise required under subpart F of Regulation Q (12 CFR part 217, subpart F) upon a determination that the company's capital requirement for market risk as calculated under Regulation Q is not commensurate with the market risk of the company's covered positions; (B) Under § 217.201(c)(2) of Regulation Q (12 CFR 217.201(c)(2)) to assign a different risk-based capital requirement to one or more covered positions or portfolios that more accurately reflects the risk of the positions or portfolios; and (C) Under § 217.201(c)(3) of Regulation Q (12 CFR 217.201(c)(3)) to calculate risk-based capital requirements for specific positions or portfolios under subpart F of Regulation Q (12 CFR part 217, subpart F), or under subparts D or E of Regulation Q (12 CFR part 217, subparts D or E), as appropriate, to more accurately reflect the risks of the positions. (iii) To act regarding any model approval, disapproval, rescission, or supervision under subpart F of Regulation Q (12 CFR part 217, subpart F), including the authority to: (A) Exclude from trading assets or liabilities structural foreign currency positions of a company or any hedge of a covered position that is outside the scope of the company's hedging strategy under § 217.202 of Regulation Q (12 CFR 217.202); (B) Act on a request from a company under § 217.203(c)(1) of Regulation Q (12 CFR 217.203(c)(1)) to approve its internal model(s) to calculate its risk-based capital requirement; (C) Rescind approval under § 217.203(c)(3) of Regulation Q (12 CFR 217.203(c)(3)) of a company's internal model(s) to calculate its risk-based capital requirement; (D) Act on a request from a company under § 217.204(a)(2)(vi)(B) of Regulation Q (12 CFR 217.204(a)(2)(vi)(B)) to use alternative techniques to measure the risk of de minimis exposures; (E) Act on a request from a company under § 217.204(b)(2) of Regulation Q (12 CFR 217.204(b)(2)) to use a different adjustment of its VaR-based measure; (F) Review and determine the appropriateness of a company's omission of risk factors under § 217.205(a)(4) of Regulation Q (12 CFR 217.205(a)(4)) and the use of proxies under § 217.205(a)(5) of Regulation Q (12 CFR 217.205(a)(5)); (G) Review and determine under § 217.205(b)(1) of Regulation Q (12 CFR 217.205(b)(1)) the appropriateness of any conversions of VaR to other holding periods by a company; (H) Review and determine under § 217.205(b)(2)(ii) of Regulation Q (12 CFR 217.205(b)(2)(ii)) the appropriateness of a company's alternative weighting schemes; (I) Approve or disapprove under § 217.205(c) of Regulation Q (12 CFR 217.205(c)) any requirements relating to a company's division of subportfolios; (J) Approve or disapprove under § 217.206(b)(3) of Regulation Q (12 CFR 217.206(b)(3)) any changes to a company's policies and procedures that describe how the company determines the period of significant financial stress used to calculate its stressed VaR-based measure; (K) Require a company under § 217.206(b)(4) of Regulation Q (12 CFR 217.206(b)(4)) to use a different period of significant financial stress in the calculation of the stressed VaR-based measure; (L) Act on a request by a company under § 217.208(a) of Regulation Q (12 CFR 217.208(a)) to include certain portfolios of equity positions in its incremental risk model; (M) Act on a request by a company under § 217.209(a)(1) of Regulation Q (12 CFR 217.209(a)(1)) to use the comprehensive risk approach for one or more portfolios of correlation trading positions and the related approval under § 217.209(a)(2)(ii) of Regulation Q (12 CFR 217.209(a)(2)(ii)) regarding a company's comprehensive risk capital requirement; (N) Determine under § 217.210(e)(3) of Regulation Q (12 CFR 217.210(e)(3)) whether an index is a main index because the equities represented by the index have comparable liquidity, depth of market, and size of bid-ask spreads as equities in the Standard & Poor's 500 Index and FTSE All-World Index; and (O) Determine under § 217.210(f)(1) of Regulation Q (12 CFR 217.210(f)(1)) whether or not a company has demonstrated a comprehensive understanding of the features of a securitization exposure. (7) Delegations of Authority under Basel I-based Capital Guidelines (ii) To approve under section II.A.2. of appendix A to Regulation Y, 12 CFR part 225, a bank or bank holding company's redemption of subordinated debt or mandatorily convertible securities prior to the stated maturity. (8) Delegations regarding the Building Block Approach in subpart J of Regulation Q (12 CFR part 217, subpart J). (i) [Reserved] (ii) After consultation with the General Counsel: (A) To require a supervised insurance organization to exclude all or a portion of a particular company capital element from building block available capital, to approve the inclusion on a permanent or temporary basis of a capital resource in building block available capital, to adjust the building block capital requirement and building block available capital of a supervised insurance organization, or to require a supervised insurance organization to take certain actions to better reflect the risk profile of an inventory company or the supervised insurance organization, under § 217.601(d) of Regulation Q (12 CFR 217.601(d)); (B) To require a supervised insurance organization to apply an alternative treatment to a treatment otherwise required by subpart J of Regulation Q (12 CFR part 217 subpart J) under § 217.601(d)(4) of Regulation Q (12 CFR 217.601(d)(4)); (C) To approve a request to exercise a call option on an instrument under § 217.608(a)(1)(v)(A) or § 217.608(a)(2)(iv)(A) of Regulation Q (12 CFR 217.608(a)(1)(v)(A) or 217.608(a)(2)(iv)(A)); (D) To approve a request to redeem or repurchase an instrument under 217.608 (a)(1)(vi) or § 217.608(a)(2)(v) of Regulation Q (12 CFR 217.608(a)(1)(vi) or 217.608(a)(2)(v)); and (E) To approve a request to include in building block available capital an instrument issued by a company in a supervised insurance organization under § 217.608(g) of Regulation Q (12 CFR 217.608(g)). (l) Concentration Limit Actions (2) To calculate and publish total financial sector liabilities for the preceding calendar year and the average of financial sector liabilities for the preceding two calendar years, for use in calculating whether a firm exceeds 10 percent of the liabilities of all financial firms in the United States pursuant to section 14 of the Bank Holding Company Act (12 U.S.C. 1852); and (3) To provide prior written consent for purposes of section 14 of the Bank Holding Company Act (12 U.S.C. 1852) to a financial company to consummate an acquisition of a de minimis transaction, to the extent that the transaction otherwise meets all other criteria for delegated action related to financial, managerial, convenience and needs, and other review factors. (m) Savings and loan holding companies. (i) To extend the time limits in, or otherwise modify, an agreement entered into by a savings and loan holding company pursuant to § 238.66 of Regulation LL (12 CFR 238.66). (ii) To determine that publication of an agreement entered into by a savings and loan holding company pursuant to § 238.66 of Regulation LL (12 CFR 238.66) would be contrary to the public interest under the publication requirements of the Federal Deposit Insurance Act (12 U.S.C. 1811 et seq. (iii) To act on requests for exemptions or otherwise make determinations under section 11 of the Home Owners' Loan Act (12 U.S.C. 1468), as implemented in Regulation W (12 CFR part 223), to the same extent authorized with respect to insured depository institutions and their affiliates and bank holding companies. (2) With the Director of the Division of Consumer and Community Affairs, to designate the responsible Reserve Bank of a savings and loan holding company when the standard delegation would not result in an efficient allocation of supervisory resources or would not otherwise be appropriate. (n) Swaps margin and swaps push-out. (o) Certain determinations under Regulations LL, YY, and QQ. (1) Determine that an asset meets the criteria to be a highly liquid asset under the Board's prudential standards in Regulation LL (12 CFR 238.124(b)(3)(i)) and Regulation YY (12 CFR 252.35(b)) to the extent that such determination is consistent with the criteria specified in such regulations and does not raise any significant legal, policy, or supervisory concerns; (2) Determine that a foreign banking organization may comply with the requirements in Regulation YY (12 CFR 252.3(c)) through a subsidiary to the extent that such determination is consistent with the criteria specified in Regulation YY and does not raise any significant legal, policy or supervisory concerns; and (3) Identify which holding company in a multi-tiered holding company will be a covered company under Regulation QQ (12 CFR part 243) to the extent such identification is consistent with the criteria specified in Regulation QQ (12 CFR 243.2) and does not raise any significant legal, policy, or supervisory concerns. (p) Approving certain requests under the Capital Rule (Regulation Q, 12 CFR part 217) related to the exposure amount of derivative contracts. (1) To act on a request under § 217.34(f) of Regulation Q (12 CFR 217.34(f)) as to whether a holding period greater than 5 days is appropriate for variable H due to the nature, structure, or characteristics of the transaction or that is commensurate with the risks associated with the transaction; (2) To act on a request under § 217.132(c)(1) of Regulation Q (12 CFR 217.132(c)(1)) from a banking organization to change its election between the use of the standardized approach to counterparty credit risk under § 217.132(c)(5) of Regulation Q (12 CFR 217.132(c)(5)) and the internal models methodology under § 217.132(d) of Regulation Q (12 CFR 217.132(d)) for its derivative transactions; (3) To require under § 217.132(c)(2)(iii)(H) of Regulation Q (12 CFR 217.132(c)(2)(iii)(H)) that a banking organization include a derivative contract in multiple hedging sets if the risk of the derivative contract materially depends on more than one of interest rate, exchange rate, credit, equity, or commodity risk factors; (4) To act on a request under § 217.132(d)(10) of Regulation Q (12 CFR 217.132(d)(10)) from a banking organization to use a more conservative estimate of EAD for purposes of the internal models methodology; (5) To require under § 217.133(d)(1) of Regulation Q (12 CFR 217.133(d)(1)) that a banking organization determine the risk-weighted asset amount for its default fund contribution to a central counterparty (CCP) on the basis that there has been a material change in the financial condition of the CCP; (6) To act on a request under § 217.133(d)(2) of Regulation Q (12 CFR 217.133(d)(2)) from a banking organization to use a risk-weighted asset amount for a default fund contribution to a CCP that is not a qualifying central counterparty (QCCP) other than 1,250 percent risk weight; and (7) To act on a request under § 217.133(d)(6)(vi) of Regulation Q (12 CFR 217.133(d)(6)(vi)) from a banking organization to determine the risk-weighted asset amount for a default fund contribution to a QCCP according to § 217.35(d)(3)(ii) (12 CFR 217.35(d)(3)(ii)) rather than § 217.133(d) (12 CFR 217.133(d)). (q) Insurance Policy Advisory Committee. Federal Register (r) Submission of reports. (2) With the concurrence of the General Counsel, to prepare and submit to Congress reports under section 37(c) of the Federal Deposit Insurance Act (12 U.S.C. 1831n(c)), and to submit such reports to the Federal Register [87 FR 54003, Sept. 1, 2022, as amended at 88 FR 32622, May 22, 2023; 88 FR 80109, Nov. 17, 2023; 91 FR 10745, Mar. 5, 2026] § 265.8 Functions delegated to the Director of the Division of Consumer and Community Affairs. The Director of the Division of Consumer and Community Affairs (or the Director's delegatee) is authorized: (a) Examination and enforcement activities. (1) To oversee policy development regarding compliance by State member banks and other supervised entities, including by establishing criteria for the execution of examination and enforcement activities delegated to the Reserve Banks and monitoring those activities; and (2) To issue examination or inspection manuals; report, agreement, and examination forms; examination procedures, guidelines, instructions, and other similar materials. (b) Community Advisory Council. Federal Register (c) Determining inconsistencies between State and Federal laws. (1) Sections 111, 171(a) and 186(a) of the Truth in Lending Act (15 U.S.C. 1610(a), 1666j(a), 1667e(a)) and §§ 226.28 of Regulation Z (12 CFR 226.28) and 213.9 of Regulation M (12 CFR 213.9); (2) Section 919 of the Electronic Fund Transfer Act (15 U.S.C. 1693q) and § 205.12 of Regulation E (12 CFR 205.12); and (3) Section 705(f) of the Equal Credit Opportunity Act (15 U.S.C. 1691d(f)) and § 202.11 of Regulation B (12 CFR 202.11). (d) Interpreting the Fair Credit Reporting Act. (e) [Reserved] (f) Community Reinvestment Act determinations. (1) Strategic plans and any amendments thereto pursuant to § 228.27(g) and (h) of Regulation BB (12 CFR 228.27(g) and (h)); and (2) Requests for designation as a wholesale or limited purpose bank or the revocation of such designation, pursuant to § 228.25(b) of Regulation BB (12 CFR 228.25(b)). (g) Public hearings. (h) Designation of responsible Reserve Bank for savings and loan holding companies. [87 FR 54003, Sept. 1, 2022, as amended at 88 FR 80109, Nov. 17, 2023] § 265.9 Functions delegated to the Director of the Division of International Finance. The Director of the Division of International Finance (or the Director's delegatee) is authorized: (a) Establishment of foreign accounts. (b) [Reserved] § 265.10 Functions delegated to the Director of the Division of Monetary Affairs. The Director of the Division of Monetary Affairs (or the Director's delegatee) is authorized: (a) Term Deposit Facility (TDF) test operations. (1) Delay the open of a TDF operation; (2) Extend the close of a TDF operation; (3) Reschedule a TDF operation; and (4) Delay the announcement of TDF operation results. (b) Regulation D. (c) Form FR 2900. (1) To reassess the deposit reporting threshold each year, starting in February 2022, as is necessary to maintain a weekly reporting panel of 1,000 institutions comprised of foreign-related reporters and the largest M2 deposit holders for the weekly Report of Deposits and Vault Cash (Form FR 2900); and (2) To determine the frequency with which the deposit reporting threshold is reassessed ( e.g., [87 FR 54003, Sept. 1, 2022, as amended at 88 FR 32622, May 22, 2023; 88 FR 80109, Nov. 17, 2023] § 265.11 Functions delegated to the Director of the Division of Reserve Bank Operations and Payment Systems. The Director of the Division of Reserve Bank Operations and Payment Systems (or the Director's delegatee) is authorized: (a) Designated financial market utilities. (2) To extend the review period for proposed changes that raise novel or complex issues and to request additional information from the designated financial market utility for consideration of the notice. (b) Regulation II. (2) In consultation with the General Counsel, to approve the publication of annual lists of the average interchange fees each network provides to non-exempt and exempt issuers. (c) Regulation HH. [87 FR 54003, Sept. 1, 2022, as amended at 88 FR 32622, May 22, 2023; 91 FR 10745, Mar. 5, 2026] § 265.12 Functions delegated to the Secretary of the Federal Open Market Committee. The Secretary of the Federal Open Market Committee (or the Deputy Secretary in the Secretary's absence) is authorized: (a) Records of policy actions. (b) [Reserved] § 265.13 Functions delegated to the Director of the Division of Financial Stability. The Director of the Division of Financial Stability (or the Director's delegatee) is authorized: (a) Bank holding companies; savings and loan holding companies; financial holding companies; change in bank control; mergers Stress tests. (A) To develop and issue scenarios, including, but not limited to, the baseline scenario and the severely adverse scenario, that the Board would use to conduct analyses under § 238.132 of Regulation LL (12 CFR 238.132) or § 252.44 of Regulation YY (12 CFR 252.44) and that a company would use to conduct its stress tests under § 238.143 of Regulation LL (12 CFR 238.143) or § 252.14 or § 252.54 of Regulation YY (12 CFR 252.14 or 252.54), as appropriate, provided that no significant policy issues are raised; and (B) To develop and issue additional scenarios or additional components for use in the severely adverse scenario under § 238.132(b) and 238.143(b)(2) and (3) of Regulation LL (12 CFR 238.132(b) and 238.143(b)(2) and (3)), and §§ 252.14(b)(2) and (3), 252.44(b), and 252.54(b)(2) and (3) of Regulation YY (12 CFR 252.14(b)(2) and (3), 252.44(b), and 252.54(b)(2) and (3)), that the Board would use to conduct analyses under § 238.132 of Regulation LL (12 CFR 238.132) or § 252.44 of Regulation YY (12 CFR 225.44) and that a company would use to conduct its stress tests under § 238.143 of Regulation LL (12 CFR 238.143) or § 252.14 or § 252.54 of Regulation YY (12 CFR 252.14 or 252.54), as appropriate, provided that no significant policy issues are raised; (2) [Reserved] (b) Capital plans. (i) To provide a firm subject to the Board's capital plan rules with notice of its stress capital buffer requirement and an explanation of the results of the supervisory stress test pursuant to §§ 225.8(h)(1) of Regulation Y (12 CFR 225.8(h)(1)) and 238.170(h)(1) of Regulation LL (12 CFR 238.170(h)(1)); and (ii) To provide a firm subject to the Board's capital plan rules with its final stress capital buffer requirement and confirmation of its final planned capital distributions pursuant to §§ 225.8(h)(4)(i) of Regulation Y (12 CFR 225.8(h)(4)(i)) and 238.170(h)(4)(i) of Regulation LL (12 CFR 238.170(h)(4)(i)). (2) [Reserved] [87 FR 54003, Sept. 1, 2022, as amended at 88 FR 32622, May 22, 2023] §§ 265.14-265.19 [Reserved] § 265.20 Functions delegated to Federal Reserve Banks. Except as otherwise provided in this section, each Federal Reserve Bank is authorized as to a member bank or other indicated organization for which the Reserve Bank is responsible for receiving applications or registration statements or to take other actions as indicated: (a) Procedure Member bank affiliate's reports. (2) Edge corporation's divestiture of stock. (3) Edge corporation's corporate existence. (4) Bank holding company and savings and loan holding company registration statement. (5) Bank holding company divestiture of nonbanking interests. (6) Bank holding company divestiture of DPC interests. (i) Under section 4(c)(2) of the Bank Holding Company Act (12 U.S.C. 1843(c)(2)) or § 225.22(d)(1) of Regulation Y (12 CFR 225.22(d)(1)); or (ii) Under sections 2(a)(5)(D) and 3(a) of the Bank Holding Company Act (12 U.S.C. 1841(a)(5)(D) and 1842(a)). (7) Member bank's surrender of Reserve Bank stock upon withdrawal from membership. (8) Members bank's reports of condition. (9) Bank holding company's and savings and loan holding company's annual reports. (10) Regulation K; divestiture of impermissible interests. (11) Bank holding company's or savings and loan holding company's acquisition of shares, opening new bank, consummating merger. (12) Member bank's establishing domestic or foreign branch; Edge or agreement corporation's establishing branch or agency. (i) A member bank may establish a domestic branch; (ii) A member bank may establish a foreign branch; or (iii) An Edge or agreement corporation may establish a branch or agency, if no material change has occurred in the bank's (or corporation's) general condition since the application was approved. (13) Purchase of stock by Edge or agreement corporation, member bank, or bank holding company. (14) Federal Reserve membership. (15) Enforcement actions; written agreements; cease and desist orders. (i) To enter into a written agreement with a bank holding company or any nonbanking subsidiary thereof, with a savings and loan holding company or any subsidiary thereof (other than a savings association), with a State member bank, with a foreign bank that has elected to be treated as a financial holding company, or with any person or entity subject to the Board's supervisory jurisdiction under section 8(b) of the Federal Deposit Insurance Act (12 U.S.C. 1818(b)) concerning the prevention or correction of an unsafe or unsound practice in conducting the business of the bank holding company or its nonbanking subsidiary, savings and loan holding company or its subsidiary (other than a savings association), or State member bank, or foreign bank that has elected to be treated as a financial holding company, or other entity, or concerning the correction or prevention of any violation of law, rule, or regulation, including section 4(m) of the Bank Holding Company Act (12 U.S.C. 1843(m)), or any condition imposed in writing by the Board in connection with the granting of any application or other request by the bank or company; and (ii) To stay, modify, terminate, or suspend an agreement entered into pursuant to this paragraph (a)(15), other than to extend time limits in a corrective agreement with a financial institution under section 4(m) of the Bank Holding Company Act (12 U.S.C. 1843(m)). (iii) To stay, modify, terminate, or suspend an outstanding cease and desist order that has become final pursuant to 12 U.S.C. 1818(b). Any agreement authorized under this paragraph may, by its terms, be enforceable to the same extent and in the same manner as an effective and outstanding cease and desist order that has become final pursuant to 12 U.S.C. 1818(b). (16) Appointment of assistant Federal Reserve agents. (17) Relief from or modification of commitments. (b) Availability of Information; Board records. (c) Holding companies; change in bank control; mergers Require reports under oath. (2) Acquisition of going concern—authorization of consummation; early consummation. (ii) To permit a bank holding company or savings and loan holding company to make a proposed acquisition of a going concern before the expiration of the 30-day period referred to in § 225.24(d)(1) of Regulation Y (12 CFR 225.24(d)(1)) or § 238.53(f)(1)(i) of Regulation LL (12 CFR 238.53(f)(1)(i)) because exigent circumstances justify consummation of the acquisition at an earlier time. (3) Petition for review of decision that adverse comments are not substantive; permit proposed de novo activities; authorization of consummation. (i) To permit a bank holding company to engage de novo in activities specified in § 225.28(b) of Regulation Y (12 CFR 225.28(b)), or a savings and loan holding company to engage de novo in activities specified in §§ 238.53 and 238.54 of Regulation LL (12 CFR 238.53 and 238.54), or retain shares in a company established de novo and engaging in such activities, if the Reserve Bank's evaluation of the considerations specified in section 4(c)(8) of the Bank Holding Company Act (12 U.S.C. 1843(c)(8)) or section 10(c) of the Home Owners' Loan Act (12 U.S.C. 1467a(c)) leads it to conclude that the proposal can reasonably be expected to produce benefits to the public. (ii) To notify a bank holding company or savings and loan holding company that the proposal should not be consummated until specifically authorized by the Reserve Bank or by the Board or that the proposal should be processed in accordance with the procedures in subpart C of Regulation Y (12 CFR part 225, subpart C) or subpart F of Regulation LL (12 CFR part 238, subpart F). (4) Nonbanking activities. (ii) To approve requests by foreign banks subject to the Bank Holding Company Act by operation of section 8(a) of the International Banking Act (12 U.S.C. 3106(a)) to engage in acting as a certification authority for digital signatures and authenticating the identity of persons conducting financial and nonfinancial transactions, as an activity that is closely related to banking for purposes of section 4(c)(8) of the Bank Holding Company Act (12 U.S.C. 1843(c)(8)), when the proposal meets the conditions imposed by the Board in approving previous requests, and no significant legal, policy, or supervisory issues are raised by the specific proposal. (5) Permit or stay of modification or location of activities. (6) Notices under the Change in Bank Control Act. (i) To determine the informational sufficiency of notices and reports filed under the Change in Bank Control Act (12 U.S.C. 1817(j)); (ii) To extend periods for consideration of notices; (iii) To determine whether a person who is or will be subject to a presumption described in § 225.41(c)(2) of Regulation Y (12 CFR 225.41(c)(2)) or § 238.31(c)(2) of Regulation LL (12 CFR 238.31(c)(2)) should file a notice regarding a proposed transaction; and (iv) To issue a notice of intention not to disapprove a proposed change in control if all the following conditions are met: (A) No member of the Board has indicated an objection prior to the Reserve Bank's action; (B) No senior officer or director of an involved party is also a director of a Federal Reserve Bank or branch; (C) All relevant departments of the Reserve Bank concur; (D) If the proposal involves shares of a State member bank or a bank holding company controlling a State member bank, the appropriate bank supervisory authorities have indicated that they have no objection to the proposal, or no objection has been received from them within the time allowed by the act; and (E) No significant policy issue under the Change in Bank Control Act (12 U.S.C. 1817(j)), § 225.41 of Regulation Y (12 CFR 225.41), or § 238.31 of Regulation LL (12 CFR 238.31) is raised by the proposal as to which the Board has not expressed its view. (7) Failure to comply with publication requirement under the Change in Bank Control Act. (8) Legacy nonbanking activities. (i) The company or its successor is “a company covered in 1970”; (ii) The nonbanking activities that the bank holding company seeks to continue do not present any significant unsettled policy issues; and (iii) The bank holding company was lawfully engaged in such activities as of June 30, 1968, and has been engaged in such activities continuously thereafter. (9) Opening of additional nonbanking offices. (10) Volcker Rule. (i) No significant issues have been identified regarding the firm's compliance program; (ii) The banking entity has represented that all of the requirements under section 13 of the Bank Holding Company Act (12 U.S.C. 1851) and its implementing regulations (12 CFR part 248) for organizing and offering a covered fund have been met; (iii) The banking entity provides a plan for reducing the permitted investment in a covered fund through redemption, sale, dilution, or other methods by the end of the extension period; and (iv) The primary Federal agency responsible for enforcing compliance with section 13 of the Bank Holding Company Act (12 U.S.C. 1851) by the banking entity that invests in or sponsors the covered fund (if other than the Federal Reserve) does not object to the extension. (11) Notices for addition or change of directors or officers. (i) To determine the informational sufficiency of notices filed pursuant to § 225.72 of Regulation Y (12 CFR 225.72) or § 238.73 of Regulation LL (12 CFR 238.73); and (ii) To waive the prior notice requirements of those sections. (12) Applications requiring Board approval; competitive factors reports for bank mergers and savings association mergers. (i) A member of the Board has indicated an objection prior to the Reserve Bank's action; or (ii) The Board has indicated that such delegated authority shall not be exercised by the Reserve Bank in whole or in part; or (iii) A written substantive objection to the application has been properly made; or (iv) The application raises a significant policy issue or legal question on which the Board has not established its position; or (v)(A)With respect to holding company formations, acquisitions or mergers of holding companies, or acquisitions or mergers of insured depository institutions, except as set forth in paragraph (c)(12)(v)(B) of this section, upon consummation, the proposal would result in the control by a banking organization of over 35 percent of total deposits in banking offices in the relevant geographic market or an increase of at least 200 points in the Herfindahl-Hirschman Index (HHI) for deposits in a highly concentrated market (a market with a post-merger HHI of at least 1800) when including: ( 1 ( 2 (B) With respect to the formation of a savings and loan holding company, the merger of savings and loan holding companies, or the acquisition by a savings and loan holding company of a savings association, upon consummation, the proposal would result in the control by a banking organization of over 35 percent of total deposits in banking offices in the relevant geographic market or an increase of at least 200 points in the HHI for deposits in a highly concentrated market (a market with a post-merger HHI of at least 1800) when including: ( 1 ( 2 (vi) With respect to nonbank acquisitions, the nonbanking activities involved do not clearly fall within activities that the Board has designated as permissible for bank holding companies under § 225.28(b) of Regulation Y (12 CFR 225.28(b)); or (vii) With respect to formations, acquisitions, or mergers involving depository institution holding companies, banks, or nonbank companies (except for internal corporate reorganizations), the proposed transaction represents an acquisition of assets equaling or exceeding $10 billion and would result in an organization with total assets equaling or exceeding $100 billion; or there is evidence that the transaction would result in a significant increase in interconnectedness, complexity, cross-border activities, or other risk factors related to the stability of the United States banking or financial system. (13) Waivers. (ii) To inform an acquiring savings and loan holding company, in connection with a notice submitted by the savings and loan holding company pursuant to § 238.12(d)(1) of Regulation LL (12 CFR 238.12(d)(1)), that an application under § 238.11 of Regulation LL (12 CFR 238.11) is required. (14) Savings and loan holding companies in mutual form. (ii) To act on applications to establish a subsidiary holding company of a mutual holding company filed pursuant to section 10(o) of the Home Owners' Loan Act (12 U.S.C. 1467a(o)) and § 239.11 of Regulation MM (12 CFR 239.11), if no significant legal, policy, or supervisory issues are raised by the proposal. (iii) To take any action related to an application by a mutual holding company to convert from mutual to stock form filed pursuant to section 10(o) of the Home Owners' Loan Act (12 U.S.C. 1467a(o)) and subpart E of Regulation MM (12 CFR part 239, subpart E) if no significant legal, policy, or supervisory issues are raised by the proposal. (iv) To act on notices to repurchase stock filed pursuant to section 10(o) of the Home Owners' Loan Act (12 U.S.C. 1467a(o)) and § 239.63(d) of Regulation MM (12 CFR 239.63(d)), if no significant legal, policy, or supervisory issues are raised by the proposal. (v) To extend for an additional 60 days the 30-day period within which the Board may object to a notice to repurchase stock filed pursuant to section 10(o) of the Home Owners' Loan Act (12 U.S.C. 1467a(o)) and § 239.63(d) of Regulation MM (12 CFR 239.63(d)). (vi) To act on applications to acquire savings associations, savings and loan holding companies, and other corporations filed pursuant to section 10(o) of the Home Owners' Loan Act (12 U.S.C. 1467a(o)) and § 239.7 of Regulation MM (12 CFR 239.7), if no significant legal, policy, or supervisory issues are raised by the proposal. (vii) To act on notices and applications to engage in activities filed pursuant to section 10(o) of the Home Owners' Loan Act (12 U.S.C. 1467a(o)) and § 239.8 of Regulation MM (12 CFR 239.8), if no significant legal, policy, or supervisory issues are raised by the proposal. (viii) To act on notices of indemnification filed pursuant to section 10(o) of the Home Owners' Loan Act (12 U.S.C. 1467a(o)) and § 239.40 of Regulation MM (12 CFR 239.40), if no significant legal, policy, or supervisory issues are raised by the proposal. (ix) To act on notices of waiver by mutual holding companies of the right to receive dividends declared by subsidiaries of the mutual holding company filed pursuant to section 10(o) of the Home Owners' Loan Act (12 U.S.C. 1467a(o)) and § 239.8(d) of Regulation MM (12 CFR 239.8(d)), if no significant legal, policy, or supervisory issues are raised by the proposal. (x) To act on applications relating to charter and bylaw amendments of mutual holding companies and subsidiary holding companies filed pursuant to section 10(o) of the Home Owners' Loan Act (12 U.S.C. 1467a(o)) and §§ 239.14, 239.15, 239.22, and 239.23 of Regulation MM (12 CFR 239.14, 239.15, 239.22, and 239.23), if no significant legal, policy, or supervisory issues are raised by the proposal. (xi) To act on notices of transfer of stock and issuance of stock to insiders, associates of insiders, or tax-qualified or non-tax-qualified employee stock benefit plans filed pursuant to section 10(o) of the Home Owners' Loan Act (12 U.S.C. 1467a(o)) and §§ 239.7(b) and 239.8(e) of Regulation MM (12 CFR 239.7(b) and 239.8(e)), if no significant legal, policy, or supervisory issues are raised by the proposal. (xii) To act on notices of disposition of stock of certain subsidiaries filed pursuant to section 10(o) of the Home Owners' Loan Act (12 U.S.C. 1467a(o)) and § 239.7(b) of Regulation MM (12 CFR 239.7(b)), if no significant legal, policy, or supervisory issues are raised by the proposal. (xiii) To act on applications to engage in voluntary supervisory conversions filed pursuant to section 10(o) of the Home Owners' Loan Act (12 U.S.C. 1467a(o)) and § 239.65 of Regulation MM (12 CFR 239.65), if no significant legal, policy, or supervisory issues are raised by the proposal. (xiv) To approve requests from subsidiary holding companies of mutual holding companies to conduct stock issuances pursuant to § 239.24 of Regulation MM (12 CFR 239.24), persons other than its mutual holding company parent pursuant to § 239.24 of Regulation MM (12 CFR 239.24), including approval of nonconforming stock issuances pursuant to § 239.24(c)(6)(ii) of Regulation MM (12 CFR 239.24(c)(6)(ii)) and determinations that certain procedural and substantive requirements are inapplicable pursuant to § 239.24(d) of Regulation MM (12 CFR 239.24(d)), where such requests do not raise any significant legal, policy, or supervisory issues. (xv) To approve plans of dissolution filed by mutual holding companies and subsidiary holding companies of mutual holding companies pursuant to § 239.16 of Regulation MM (12 CFR 239.16), if no significant legal, policy, or supervisory issues are raised by the proposal. (xvi) To grant a request to waive the application of § 239.59(d)(1), (h), (j), and (p)(2) of Regulation MM (12 CFR 239.59(d)(1), (h), (j), and (p)(2)) as those provisions relate to applications and notices seeking the Board's prior approval to conduct a stock issuance pursuant to § 239.24 of Regulation MM (12 CFR 239.24) related to a reorganization to mutual holding company form pursuant to section 10(o)(3) of the Home Owners' Loan Act (12 U.S.C. 1467a(o)(3)), or subsequent to a mutual holding company reorganization, and that do not raise any significant legal, policy, or supervisory concerns, except that the authority to grant waiver requests under this paragraph (c)(14)(xvi) is limited to requests by firms that— (A) Do not qualify for federal preemption of state securities filing requirements; (B) Propose to register their shares in states with ten or more eligible account holders, as that term is defined in § 239.52(c) of Regulation MM (12 CFR 239.52(c)); and (C) Would make a proposed stock offering available to account holders eligible to participate in the offering in states where the offering would qualify for an exemption from state securities filing requirements. (d) International banking Member bank, Edge corporation, or agreement corporation establishing foreign branch. (i) To waive the notice period if immediate action is required and there is no significant legal, supervisory, or policy issue; (ii) To suspend the notice period; (iii) To determine not to object to the notice, provided that no significant legal, supervisory, or policy issue is raised by the proposal; or (iv) To require the notificant to file an application for the Board's specific consent. (2) Acquisitions by a foreign branch. (3) Application to establish Edge corporation. et seq. (i) The U.S. banking organization meets the capital adequacy guidelines and is otherwise in satisfactory condition; (ii) The proposed Edge corporation will be a wholly owned subsidiary of a single banking organization; and (iii) No significant legal, supervisory, or policy issues are raised by the proposal. (4) Issuance of permit to Edge corporation and amendments to articles of association and charter. (5) Investments in Edge and agreement corporations. (i) The member bank's total investment, including retained earnings of the Edge and agreement corporation, does not exceed 20 percent of the bank's capital and surplus and would not exceed that level as a result of the proposal; and (ii) The proposal raises no significant legal, supervisory, or policy issues. (6) Foreign ownership of an Edge corporation. (7) Change in control of an Edge corporation. (i) To waive the notice period if immediate action is required and no significant legal, supervisory, or policy issue is raised; (ii) To extend the notice period; (iii) To determine not to object to the notice if no significant legal, supervisory, or policy issue is raised; or (iv) To require the notificant to file an application for the Board's specific consent. (8) Granting specific consent. (i) A long range investment plan, under § 211.9(a)(4) of Regulation K (12 CFR 211.9(a)(4)); or (ii) An investment in its first subsidiary or its first joint venture, under § 211.9(a)(5) of Regulation K (12 CFR 211.9(a)(5)), where such investment does not exceed the general consent limitations under § 211.9(b) of Regulation K (12 CFR 211.9(b)). (9) Investment in export trading company. (i) The proposed export trading company will be a wholly owned subsidiary of a single investor, or ownership will be shared with an individual or individuals involved in the operation of the export trading company; (ii) A bank holding company investor and its lead bank meet the minimum capital adequacy guidelines of the Board, the Comptroller of the Currency, or the Federal Deposit Insurance Corporation or have enacted capital enhancement plans that have been determined by the appropriate supervisory authority to be acceptable; (iii) The proposed activities of the export trading company do not include product research or design, product modification, or activities not specifically covered by the list of services contained in 4(c)(14)(F)(ii) of the Bank Holding Company Act (12 U.S.C. 1843(c)(14)(F)(ii)); and (iv) No other significant policy issue is raised on which the Board has not previously expressed its view under section 4(c)(14) of the Bank Holding Company Act (12 U.S.C. 1843(c)(14)) and subpart C of Regulation K (12 CFR part 211, subpart C). (10) Authority under prior-notice procedures. (A) To waive the notice period if immediate action is required and there is no significant legal, supervisory, or policy issue raised; (B) To suspend the notice period; (C) To determine not to object to the notice if there is no significant legal, supervisory, or policy issue raised; or (D) To require the notificant to file an application for the Board's specific consent. (ii)-(iv) [Reserved] (v) With regard to a prior notice of a foreign bank to establish certain U.S. offices under § 211.24(a)(2)(i) of Regulation K (12 CFR 211.24(a)(2)(i)): (A) To waive the notice period if immediate action is required and there is no significant legal, supervisory, or policy issue raised; (B) To suspend the notice period; (C) To determine not to object to the notice if there is no significant legal, supervisory, or policy issue raised; or (D) To require the notificant to file an application for the Board's specific consent. (11) Activities usual in connection with banking or other financial operations abroad. (ii) To approve a prior notice, under § 211.10(a)(15) of Regulation K (12 CFR 211.10(a)(15)), to engage in dealing in equity securities outside the United States, provided that the proposal raises no significant legal, supervisory, or policy issue. (iii) To approve a prior notice, under § 211.10(a)(15)(iv)(B) of Regulation K (12 CFR 211.10(a)(15)(iv)(B)), to use internal hedging models, provided that the proposal raises no significant legal, supervisory, or policy issue. (iv) To approve a prior notice, under § 211.10(a)(18) of Regulation K (12 CFR 211.10(a)(18), to engage in futures commission merchant activities on an mutual exchange or clearinghouse that requires members to guarantee or otherwise contract to cover losses suffered by the other members, provided that the Board has previously approved the exchange, the application is on the same terms and conditions on which the Board based its approval of the exchange, and no significant legal, supervisory, or policy issue is raised. (12) Change in foreign bank home state. (i) To waive the notice period; or (ii) To determine not to object to the notice. (13) Waiver of 30-day prior notification period. (14) Offices of foreign banks. (ii) To allow a foreign bank to establish a temporary office of a branch or agency, pursuant to § 211.24(a)(5) of Regulation K (12 CFR 211.24(a)(5)), provided there is no direct public access to such office and no significant legal, supervisory, or policy issue is raised. (15) Agreement with foreign bank concerning deposits of out-of-home-state branch. (16) Dividends of property other than cash by an Edge corporation. (e) Member banks Approval of membership applications. et seq. (2) Waiver of notice of intention to withdraw from membership. (3) Approval of branch applications. et seq. (4) Declaration of dividends in excess of net profits. (i) The bank's capitalization in relation to the character and condition of its assets and to its deposit liabilities and other corporate responsibilities, including the volume of its risk assets and of its marginal and inferior quality assets, all considered in relation to the strength of its management; and (ii) The bank's capitalization after payment of the proposed dividends. (5) Reduction of capital stock. (i) In conformity with the requirements of Federal law; and (ii) Adequate in relation to the character and condition of its assets and to its deposit liabilities and other corporate responsibilities, including the volume of its risk assets and of its marginal and inferior quality assets, all considered in relation to the strength of its management. (6) Acceptance of drafts and bills of exchange. (7) Investment in bank premises in excess of capital stock. (8) Security devices. (9) Classifying member banks for election of directors. (i) The statutory requirement that each of the three groups shall consist as nearly as may be of banks of similar capitalization; and (ii) The desirability that every member bank have the opportunity to vote for a class A or a class B director at least once every three years. (10) Waiver of penalty for deficient reserves. (11) Retirement of subordinated debt. (12) Public welfare investments. (ii) To determine, in connection with acting on a proposal pursuant to delegated authority as set forth in paragraph (e)(12)(i) of this section, that the aggregate amount of a State member bank's public welfare investments will not pose a significant risk to the deposit insurance fund in accordance with section 9(23) of the Federal Reserve Act (12 U.S.C. 338a). (13) Dividends of property other than cash by a State member bank. (f) Securities. (g) Management interlocks. (h) Qualified family partnerships. (i) Financial holding companies. (j) Savings and loan holding companies. (2) To act on notices of capital distributions filed pursuant to section 10(f) of the Home Owners' Loan Act (12 U.S.C. 1467a(f)) and § 238.103 of Regulation LL (12 CFR 238.103). (3) To act on elections to engage in financial holding company activities filed pursuant to section 10(c) of the Home Owners' Loan Act (12 U.S.C. 1467a(c)) and subpart G of Regulation LL (12 CFR part 238, subpart G), if no significant legal, policy, or supervisory issues are raised by the proposal. (4) To act on notices and applications to engage in activities filed pursuant to section 10(c) of the Home Owners' Loan Act (12 U.S.C. 1467a(c)) and subparts F and G of Regulation LL (12 CFR part 238, subparts F and G), if no significant legal, policy, or supervisory issues are raised by the proposal. (5) To grant requests by companies to deregister as savings and loan holding companies, if no significant legal, policy, or supervisory issues are raised by the proposal. (k) Financial operations of the Bank for International Settlements. (l) Regulatory capital rule Delegations regarding the definition of capital. (A) Act on a company's request under § 217.20(b)(1)(iii), § 217.20(c)(1)(vi), or § 217.20(d)(1)(x) of Regulation Q (12 CFR 217.20(b)(1)(iii), 217.20(c)(1)(vi), or 217.20(d)(1)(x)) to redeem a security; and (B) Act on a company's request under § 217.20(c)(1)(v)(A) or § 217.20(d)(1)(v)(A) of Regulation Q (12 CFR 217.20(c)(1)(v)(A) and 217.20(d)(1)(v)(A)) to exercise a call option. (2) Delegations regarding standardized approach risk-weighted assets. (A) Act on a request from a company under § 217.37(c) of Regulation Q (12 CFR 217.37(c)) to use its own estimates of haircuts, including: ( 1 ( 2 (B) Determine under § 217.41(c) of Regulation Q (12 CFR 217.41(c)) whether or not a company has demonstrated a comprehensive understanding of the features of a securitization exposure. (3) Delegations regarding advanced approaches risk-weighted assets. (A) Act on a request for approval of any model or optional approach available under subpart E of Regulation Q (12 CFR part 217, subpart E), including, without limitation: ( 1 ( i 5 5 ( ii 6 6 ( iii ( iv ( v ( vi ( vii ( viii ( ix ( x ( xi ( xii MKT ( xiii stressed ( 2 ( i ( ii ( 3 ( 4 ( 5 (B) Determine under § 217.131(e)(4) of Regulation Q (12 CFR 217.131(e)(4)) whether a portfolio of exposures is or is not material; and (C) Assess for purposes of § 217.141(c)(1) of Regulation Q (12 CFR 217.141(c)(1)) whether a company has a comprehensive understanding of the features of a securitization exposure that would materially affect the performance of the exposure. (4) Delegations regarding market risk risk-weighted assets. (A) Exclude from the definition of “covered position” structural foreign currency positions of a company, or any hedge of a trading position that is outside the scope of the company's hedging strategy, under § 217.202(b) of Regulation Q (12 CFR 217.202(b)); (B) Act on a request from a company under § 217.203(c)(1) of Regulation Q (12 CFR 217.203(c)(1)) to approve its internal model(s) to calculate its risk-based capital requirement; (C) Rescind approval under § 217.203(c)(3) of Regulation Q (12 CFR 217.203(c)(3)) of a company's internal model(s) to calculate its risk-based capital requirement; (D) Act on a request from a company under § 217.204(a)(2)(vi)(B) of Regulation Q (12 CFR 217.204(a)(2)(vi)(B)) to use alternative techniques to measure the risk of de minimis exposures; (E) Act on a request from a company under § 217.204(b)(2) of Regulation Q (12 CFR 217.204(b)(2)) to use a different adjustment of its VaR-based measure; (F) Review and determine the appropriateness of a company's omission of risk factors under § 217.205(a)(4) of Regulation Q (12 CFR 217.205(a)(4)) and the use of proxies under § 217.205(a)(5) of Regulation Q (12 CFR 217.205(a)(5)); (G) Review and determine under § 217.205(b)(1) of Regulation Q (12 CFR 217.205(b)(1)) the appropriateness of any conversions of VaR to other holding periods by a company; (H) Review and determine under § 217.205(b)(2)(ii) of Regulation Q (12 CFR 217.205(b)(2)(ii)) the appropriateness of a company's alternative weighting schemes; (I) Approve or disapprove under § 217.205(c) of Regulation Q (12 CFR 217.205(c)) any requirements relating to a company's division of subportfolios; (J) Approve or disapprove under § 217.206(b)(3) of Regulation Q (12 CFR 217.206(b)(3)) any changes to a company's policies and procedures that describe how the company determines the period of significant financial stress used to calculate its stressed VaR-based measure; (K) Require a company under § 217.206(b)(4) of Regulation Q (12 CFR 217.206(b)(4)) to use a different period of significant financial stress in the calculation of the stressed VaR-based measure; (L) Act on a request by a company under § 217.208(a) of Regulation Q (12 CFR 217.208(a)) to include certain portfolios of equity positions in its incremental risk model; (M) Act on a request by a company under § 217.209(a)(1) of Regulation Q (12 CFR 217.209(a)(1)) to use the comprehensive risk approach for one or more portfolios of correlation trading positions and the related approval under § 217.209(a)(2)(ii) of Regulation Q (12 CFR 217.209(a)(2)(ii)) regarding a company's comprehensive risk capital requirement; (N) Determine under § 217.210(e)(3) of Regulation Q (12 CFR 217.210(e)(3)) whether an index is a main index because the equities represented by the index have comparable liquidity, depth of market, and size of bid-ask spreads as equities in the Standard & Poor's 500 Index and FTSE All-World Index; and (O) Determine under § 217.210(f)(1) of Regulation Q (12 CFR 217.210(f)(1)) whether or not a company has demonstrated a comprehensive understanding of the features of a securitization exposure. [87 FR 54003, Sept. 1, 2022, as amended at 88 FR 32622, May 22, 2023]

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