Missouri Code of State Regulations › Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE › Division 1140 - Division of Finance › Chapter 2 - Banks and Trust Companies › Section 20 CSR 1140-2.138 - Financial Subsidiaries

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This section sets forth authorized
				  activities, approval procedures, and conditions for banks and trust companies
				  engaging in activities through a financial subsidiary under section
				  362.105.1(15), RSMo 2000. In the interests of being brief and concise, the
				  regulation does not include certain restrictions applicable only to extremely
				  large institutions. The Division of Finance will amend the regulation to
				  include these restrictions if appropriate in the future.
(1) Financial Subsidiary Powers. A bank or
				trust company may establish a "financial subsidiary." A financial subsidiary is
				any subsidiary of the bank or trust company other than a subsidiary that
				conducts only a) activities in which its parent bank or trust company may
				engage directly, and/or b) activities that are authorized for subsidiaries of
				that bank or trust company under Missouri statutes or regulations other than
				this regulation or section 362.105.1(15), RSMo 2000. A financial subsidiary may
				engage in any of the activities authorized for a national bank financial
				subsidiary under the Gramm-Leach-Bliley Financial Modernization Act of 1999 and
				the implementing regulations and official federal agency
				interpretations.
(2) Requirements.
				To establish or continue to hold an interest in a financial subsidiary, a bank
				or trust company must:
(A) Meet the Missouri
				minimum capital requirement as defined in section (5) of this
				regulation;
(B) Be, along with each
				of its depository institution affiliates, well capitalized and well managed
				pursuant to the definitions included in section (5) of this
				regulation;
(C) In addition to
				providing information prepared in accordance with generally accepted accounting
				principles, separately present financial information for the institution in the
				manner provided in paragraph (5)(C)2. of this rule in any published or posted
				financial statement of the institution;
(D) Have aggregate consolidated total assets
				of all financial subsidiaries not exceeding forty-five percent (45%) of the
				bank or trust company's consolidated total assets;
(E) Have reasonable policies and procedures
				to preserve the separate corporate identity and limited liability of the
				institution and the financial subsidiaries of the institution;
(F) Have procedures for identifying and
				managing financial and operational risks within the institution and the
				financial subsidiary that adequately protect the institution from such
				risks;
(G) Have obtained Community
				Reinvestment Act (CRA) ratings of "satisfactory record of meeting community
				credit needs" or better on the most recent CRA examination of the bank or trust
				company and any of its insured depository institution affiliates; and
(H) Comply with the requirements of sections
				23A and 23B of the Federal Reserve Act applicable to financial
				subsidiaries.