# 12 C.F.R. § 208.72 (2026): What activities may a financial subsidiary conduct?

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T12_P208_S208_72

## Section

- **Citation:** 12 C.F.R. § 208.72 (2026)
- **Heading:** What activities may a financial subsidiary conduct?
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 12 CFR: Banks and Banking / Chapter II / Part 208 / Subpart G / § 208.72: § 208.72   What activities may a financial subsidiary conduct?

## Text

(a) Authorized activities. A financial subsidiary of a state member bank may engage in only the following activities: (1) Any financial activity listed in § 225.86(a), (b), or (c) of the Board's Regulation Y (12 CFR 225.86(a), (b), or (c)); (2) Any activity that the Secretary of the Treasury, in consultation with the Board, has determined to be financial in nature or incidental to a financial activity and permissible for financial subsidiaries pursuant to Section 5136A(b) of the Revised Statutes of the United States (12 U.S.C. 24a(b)); and (3) Any activity that the state member bank is permitted to engage in directly (subject to the same terms and conditions that govern the conduct of the activity by the state member bank). (b) Impermissible activities. Notwithstanding paragraph (a) of this section, a financial subsidiary may not engage as principal in the following activities: (1) Insuring, guaranteeing, or indemnifying against loss, harm, damage, illness, disability or death (except to the extent permitted under applicable state law and section 302 or 303(c) of the Gramm-Leach-Bliley Act (15 U.S.C. 6712 or 6713(c)); (2) Providing or issuing annuities the income of which is subject to tax treatment under section 72 of the Internal Revenue Code of 1986 (26 U.S.C. 72); (3) Real estate development or real estate investment, unless otherwise expressly authorized by applicable state and Federal law; and (4) Any merchant banking or insurance company investment activity permitted for financial holding companies by section 4(k)(4)(H) or (I) of the Bank Holding Company Act (12 U.S.C. 1843(k)(4)(H) and (I)).

## Nearby sections

- [12 C.F.R. § 208.71 (2026) § 208.71   What are the requirements to invest in or control a financial subsidiary?](https://www.frixlaw.com/law-library/statutes/CFR_T12_P208_S208_71.md)
- [12 C.F.R. § 208.72 (2026) § 208.72   What activities may a financial subsidiary conduct?](https://www.frixlaw.com/law-library/statutes/CFR_T12_P208_S208_72.md)
- [12 C.F.R. § 208.73 (2026) § 208.73   What additional provisions are applicable to state member banks with financial subsidiaries?](https://www.frixlaw.com/law-library/statutes/CFR_T12_P208_S208_73.md)
- [12 C.F.R. § 208.74 (2026) § 208.74   What happens if the state member bank or a depository institution affiliate fails to continue to meet certain requirements?](https://www.frixlaw.com/law-library/statutes/CFR_T12_P208_S208_74.md)
- [12 C.F.R. § 208.75 (2026) § 208.75   What happens if the state member bank or any of its insured depository institution affiliates receives less than a “satisfactory” CRA rating?](https://www.frixlaw.com/law-library/statutes/CFR_T12_P208_S208_75.md)
- [12 C.F.R. § 208.76 (2026) § 208.76   What Federal Reserve approvals are necessary for financial subsidiaries?](https://www.frixlaw.com/law-library/statutes/CFR_T12_P208_S208_76.md)
- [12 C.F.R. § 208.77 (2026) § 208.77   Definitions.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P208_S208_77.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T12_P208_S208_72. Check the current official text before relying on it. Not legal advice.