The application collects information on proposed bank holding company (BHC) formations, acquisitions, and mergers. The information includes the pro forma financial condition of the applicant and of its proposed subsidiary(ies), the competitive effects of the proposal, and the effect of the proposed action on the convenience and needs of the affected communities.
Purpose: The Federal Reserve uses the information to fulfill its responsibilities under the Bank Holding Company Act to evaluate each proposed transaction as to its permissibility, competitive effects, adequacy of financial and managerial resources, and effect on the convenience and needs of affected communities.
The FR Y-3 was created in July 1994 when the FR Y-1 (Application for Prior Approval to Become a Bank Holding Company) and FR Y-2 (Application for Prior Approval for a Bank Holding Company to Acquire an Additional Bank or Bank Holding Company) were combined. In April 1999, the Board modified this application for Regulation Y changes by streamlining certain procedures and reducing significantly regulatory burden in the application review process. As part of these changes, the Board implemented the FR Y-3N (Notification for Prior Approval for a Bank Holding Company to Acquire an Additional Bank or Bank Holding Company) to streamline the process for respondents meeting certain qualifying criteria.
Entities seeking prior approval to become a BHC through the acquisition of one or more banks and existing BHCs seeking approval to acquire more than 5 percent of the stock of an additional bank or BHC, to acquire additional stock (up to 50 percent) of an existing subsidiary bank, or to merge or consolidate with another BHC.