Wisconsin Administrative Code › Department of Financial Institutions › DFI-Bkg 1-78 - Department of Financial Institutions-Banking › Chapter DFI-Bkg 3 - Parity With National Banks › Section DFI-Bkg 3.04 - Operations through subsidiaries

Current through June 24, 2024
(1) GENERAL. With
				the prior approval of the administrator of the division of banking, a bank may
				engage in activities which are a part of the business of banking or incidental
				to the business of banking by means of an operating subsidiary corporation. In
				order to qualify as an operating subsidiary hereunder, at least 80% of the
				voting stock of the subsidiary must be owned by the parent bank. No bank may
				commence any such activity unless the type, place and manner in which the
				activity is conducted has been approved by the administrator of the division of
				banking in writing or the administrator of the division of banking does not
				take written objection to the bank's completed application within 30 business
				days after it has been filed under this section.
(2) ACTIVITIES PERMITTED. An operating
				subsidiary may perform any business function which is a part of the business of
				banking or incidental to the business of banking. For example, an operating
				subsidiary may, among other things, issue credit cards, service mortgages,
				lease property or operate a credit bureau.
(3) TRANSACTIONS WITH PARENT BANK.
				Transactions between the parent bank and the operating subsidiaries are subject
				to the limitations contained in s.
				221.0320, Stats., unless the
				subsidiary engages solely in furnishing services to or in performing services
				for a parent bank.
(4)
				APPLICABILITY OF BANKING LAWS. All provisions of the banking laws and rules
				applicable to the operations of the parent bank shall be equally applicable to
				the operations of its operating subsidiaries.
(5) CONSOLIDATION OF FIGURES. Unless
				otherwise provided by banking laws or regulations, pertinent book figures of
				the parent bank and its operating subsidiaries, except agricultural credit
				corporations, shall be consolidated for the purpose of applying applicable
				statutory limitations, including s.
				221.0319,
				221.0320,
				221.0324, or
				221.0328, Stats.
(6) EXAMINATION AND SUPERVISION. Each
				operating subsidiary shall be subject to examination and supervision by the
				administrator of the division of banking in the same manner and to the same
				extent as the parent bank. If, upon examination, the administrator of the
				division of banking ascertains that the subsidiary is created or operated in
				violation of the banking law or regulation or that the manner of operation is
				detrimental to the business of the parent bank and its depositors, the
				administrator of the division of banking may order the bank to dispose of all
				or part of the subsidiary upon such terms as the administrator of the division
				of banking may deem proper.
(7)
				REPORT OF DISPOSITION OF OPERATING SUBSIDIARY. Prior to disposition of an
				operating subsidiary, the parent bank shall inform the administrator of the
				division of banking by letter of the terms of the transaction.