# 12 C.F.R. § 1.5 (2026): Safe and sound banking practices; credit information required

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T12_P1_S1_5

## Section

- **Citation:** 12 C.F.R. § 1.5 (2026)
- **Heading:** Safe and sound banking practices; credit information required
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 12 CFR: Banks and Banking / Chapter I / Part 1 / § 1.5: § 1.5   Safe and sound banking practices › credit information required.

## Text

(a) A national bank shall adhere to safe and sound banking practices and the specific requirements of this part in conducting the activities described in § 1.3. The bank shall consider, as appropriate, the interest rate, credit, liquidity, price, foreign exchange, transaction, compliance, and strategic risks presented by a proposed activity, and the particular activities undertaken by the bank must be appropriate for that bank. (b) In conducting these activities, the bank shall determine that there is adequate evidence that an obligor possesses resources sufficient to provide for all required payments on its obligations, or, in the case of securities deemed to be investment securities on the basis of reliable estimates of an obligor's performance, that the bank reasonably believes that the obligor will be able to satisfy the obligation. (c) Each bank shall maintain records available for examination purposes adequate to demonstrate that it meets the requirements of this part. The bank may store the information in any manner that can be readily retrieved and reproduced in a readable form. [61 FR 63982, Dec. 2, 1996, as amended at 91 FR 18292, Apr. 10, 2026]

## Nearby sections

- [12 C.F.R. § 1.1 (2026) § 1.1   Authority, purpose, scope, and reservation of authority.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1_S1_1.md)
- [12 C.F.R. § 1.2 (2026) § 1.2   Definitions.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1_S1_2.md)
- [12 C.F.R. § 1.3 (2026) § 1.3   Limitations on dealing in, underwriting, and purchase and sale of securities.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1_S1_3.md)
- [12 C.F.R. § 1.4 (2026) § 1.4   Calculation of limits.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1_S1_4.md)
- [12 C.F.R. § 1.5 (2026) § 1.5   Safe and sound banking practices; credit information required.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1_S1_5.md)
- [12 C.F.R. § 1.6 (2026) § 1.6   Convertible securities.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1_S1_6.md)
- [12 C.F.R. § 1.7 (2026) § 1.7   Securities held in satisfaction of debts previously contracted; holding period; disposal; accounting treatment; non-speculative purpose.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1_S1_7.md)
- [12 C.F.R. § 1.8 (2026) § 1.8   Nonconforming investments.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1_S1_8.md)
- [12 C.F.R. § 1.100 (2026) § 1.100   Indirect general obligations.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1_S1_100.md)
- [12 C.F.R. § 1.110 (2026) § 1.110   Taxing powers of a State or political subdivision.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1_S1_110.md)
- [12 C.F.R. § 1.120 (2026) § 1.120   Prerefunded or escrowed bonds and obligations secured by Type I securities.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1_S1_120.md)
- [12 C.F.R. § 1.130 (2026) § 1.130   Type II securities; guidelines for obligations issued for university and housing purposes.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1_S1_130.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T12_P1_S1_5. Check the current official text before relying on it. Not legal advice.