I understand that if a bank receives a "needs to improve" rating that the regulators scrutinize branch applications, mergers, etc. of the respective bank & its subsidiaries. If I read the regulation correctly, it doesn't mention any impact on affiliates in the same holding company.

Can a "needs to improve" rating impact affiliates' expansion activities?

Thanks for your help.

If you are a financial services holding company instead of a bank holding company, a needs to improve rating at any affiliate would adversely impact all.

Thanks for the information. Obviously, I need to become a little more knowledgeable. Can you provide a link or reference cite?

Thanks.

That's part of GLBA. Can't remember the exact cite, but you could change your holding company charter to a FS holding company and go buy an insurance company or investment company without prior regulatory approval. If you did that then all of your affilates' ratings in S&S, Compliance and CRA would affect future expansion for all.

Thanks.