Company: SHG
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001193125-25-089950
Chunk: 255

Company: SHINHAN FINANCIAL GROUP CO LTD
Filing Date: 2025-04-23
Form: 20-F
Chunk 255
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 or unsound practice with respect to such institution. In June 2024, the FDIC proposed rules that would amend aspects of the FDIC’s brokered deposit regulations. Among other things, the proposed changes eliminate certain exceptions to the FDIC’s definition of “deposit broker.” It is unclear if the proposed rules will be finalized and, if so, the extent to which the final rules will differ from the proposal. Accordingly, the impact of any amendments to the FDIC’s brokered deposit regulations on Shinhan Bank America’s operations is uncertain. Shinhan Bank America had an aggregate amount of US$10 million of brokered deposits outstanding as of December 31, 2024.

Community Reinvestment and Consumer Protection Laws. In connection with its lending activities, Shinhan Bank America is subject to a variety of federal laws designed to protect borrowers and promote lending to various sectors of the economy and population. Included among these are the Home Mortgage Disclosure Act, Real Estate Settlement Procedures Act, Truth-in-Lending Act, Equal Credit Opportunity Act, Fair Credit Reporting Act and CRA.

The CRA requires FDIC insured banks to define the assessment areas that they serve, identify the credit needs of those assessment areas and take actions that respond to the credit needs of the community. The FDIC must conduct regular CRA examinations of Shinhan Bank America and assign it a CRA rating of “outstanding,” “satisfactory,” “needs to improve” or “substantial noncompliance.” Shinhan Bank America is also subject to provisions of the New York State Banking Law which impose similar obligations to serve the credit needs of its assessment areas. The Department and the FDIC each periodically assess a bank’s compliance and make such assessments available to the public. Federal and New York State laws both require consideration of these ratings when regulatory agencies review a bank’s application to engage in certain transactions, including mergers, asset purchases and the establishment of branch offices. A negative assessment may serve as a basis for the denial of any such application. Shinhan Bank America has received “satisfactory” ratings from both the Department and the FDIC in its most recent CRA performance evaluation.

In October 2023, the FDIC and other federal regulatory agencies finalized comprehensive amendments to the CRA regulatory framework. The amendments will be effective as of January 1, 2026. Among other things, the amendments are intended to reflect changes in the banking industry, including the expanded role of mobile and online banking and to tailor performance standards to account for differences in bank size, business models and local conditions. The