Regulatory Alerts2018-06-17
Control or Substantial Noncontrolling Interest in Nonbank Financial Corporations
The Supervisor of Banks issued this directive to regulate banking corporations' acquisition of control or substantial noncontrolling interests in nonbank financial corporations to mitigate risks to the parent bank's stability. It mandates a 45-day prior written notification containing detailed information on governance, risk management, funding, and host-country regulatory conditions. The Supervisor evaluates these requests based on financial resilience, reputational impact, and public interest, while requiring ongoing reporting of significant changes in holdings or activities.
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