# 12 C.F.R. § 208.75 (2026): What happens if the state member bank or any of its insured depository institution affiliates receives less than a “satisfactory” CRA rating?

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T12_P208_S208_75

## Section

- **Citation:** 12 C.F.R. § 208.75 (2026)
- **Heading:** What happens if the state member bank or any of its insured depository institution affiliates receives less than a “satisfactory” CRA rating?
- **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 / § 208.75: § 208.75   What happens if the state member bank or any of its insured depository institution affiliates receives less than a “satisfactory” CRA rating?

## Text

(a) Limits on establishment of financial subsidiaries and expansion of existing financial subsidiaries. If a state member bank, or any insured depository institution affiliate of the bank, has received less than a “satisfactory” rating in meeting community credit needs in its most recent examination under the Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq. ): (1) The state member bank may not, directly or indirectly, acquire control of any financial subsidiary; and (2) Any financial subsidiary controlled by the state member bank may not commence any additional activity or acquire control, including all or substantially all of the assets, of any company. (b) Exception for certain activities. The prohibition in paragraph (a)(2) of this section does not apply to any activity, or to the acquisition of control of any company that is engaged only in activities, that the state member bank is permitted to conduct directly and that are conducted on the same terms and conditions that govern the conduct of the activity by the state member bank. (c) Duration of prohibitions. The prohibitions described in paragraph (a) of this section shall continue in effect until such time as the state member bank and each insured depository institution affiliate of the state member bank has achieved at least a “satisfactory” rating in meeting community credit needs in its most recent examination under the Community Reinvestment Act.

## 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_75. Check the current official text before relying on it. Not legal advice.