Wisconsin Administrative Code
Department of Financial Institutions
DFI-Bkg 1-78 - Department of Financial Institutions-Banking
Chapter DFI-Bkg 3 - Parity with national banks
Section DFI-Bkg 3.04 - Operations through subsidiaries
Current through February 26, 2024
(1) GENERAL. With the prior approval of the administrator of the division of banking, a bank may engage in activities which are a part of the business of banking or incidental to the business of banking by means of an operating subsidiary corporation. In order to qualify as an operating subsidiary hereunder, at least 80% of the voting stock of the subsidiary must be owned by the parent bank. No bank may commence any such activity unless the type, place and manner in which the activity is conducted has been approved by the administrator of the division of banking in writing or the administrator of the division of banking does not take written objection to the bank's completed application within 30 business days after it has been filed under this section.
(2) ACTIVITIES PERMITTED. An operating subsidiary may perform any business function which is a part of the business of banking or incidental to the business of banking. For example, an operating subsidiary may, among other things, issue credit cards, service mortgages, lease property or operate a credit bureau.
(3) TRANSACTIONS WITH PARENT BANK. Transactions between the parent bank and the operating subsidiaries are subject to the limitations contained in s. 221.0320, Stats., unless the subsidiary engages solely in furnishing services to or in performing services for a parent bank.
(4) APPLICABILITY OF BANKING LAWS. All provisions of the banking laws and rules applicable to the operations of the parent bank shall be equally applicable to the operations of its operating subsidiaries.
(5) CONSOLIDATION OF FIGURES. Unless otherwise provided by banking laws or regulations, pertinent book figures of the parent bank and its operating subsidiaries, except agricultural credit corporations, shall be consolidated for the purpose of applying applicable statutory limitations, including but not limited to s. 221.0319, 221.0320, 221.0324 or 221.0328, Stats.
(6) EXAMINATION AND SUPERVISION. Each operating subsidiary shall be subject to examination and supervision by the administrator of the division of banking in the same manner and to the same extent as the parent bank. If, upon examination, the administrator of the division of banking ascertains that the subsidiary is created or operated in violation of the banking law or regulation or that the manner of operation is detrimental to the business of the parent bank and its depositors, the administrator of the division of banking may order the bank to dispose of all or part of the subsidiary upon such terms as the administrator of the division of banking may deem proper.
(7) REPORT OF DISPOSITION OF OPERATING SUBSIDIARY. Prior to disposition of an operating subsidiary, the parent bank shall inform the administrator of the division of banking by letter of the terms of the transaction.
