Description:
Regulation H requires state member banks engaging in permissible community development and public welfare investments provide notice of such investments to the Federal Reserve Bank in their District. The statutory provision authorizes state member banks (SMBs) to make investments designed primarily to promote the public welfare to the extent permissible under state law and subject to regulation by the Board. Regulation H permits SMBs to make certain public welfare investments without prior approval so long as the aggregate of such investments does not exceed 5 percent of the capital stock and surplus of the SMB, the bank is well capitalized and well managed, and the investment does not expose the SMB to liability beyond the amount of the investment.

Subjects:
Applications/Structure

Audiences:
Commercial Banks