We have a digital sign outside of our bank where we market our products and services. We are looking at getting a larger, updated sign and they are very costly. To offset some of these costs, Management is asking about selling space to local businesses to advertise on our sign and to list community events. We would charge the same rate to everyone (whatever the fair market value for the pro-rate share of the advertising space). I wanted to know if something like this is prohibited anywhere in banking regulations? Is anyone aware of any other issues we may want to consider? I haven’t seen any banks doing this, so I am not sure if that means it may be prohibited.

I'm not aware of any banking regulations, but in my state, there are very strict laws about signage. For instance, they can't list community events, other business promo's, etc. They can only promote things directly related to that business. I would check with your department of roads or other state agencies before moving forward.

If the sign can't increase income enough to pay for itself, maybe it's a bad business decision.