Section 225.81 - What is a financial holding company?(a)Definition. A financial holding company is a bank holding company that meets the requirements of this section.(b)Requirements to be a financial holding company. In order to be a financial holding company: (1) All depository institutions controlled by the bank holding company must be and remain well capitalized;(2) All depository institutions controlled by the bank holding company must be and remain well managed; and(3) The bank holding company must have made an effective election to become a financial holding company.(c)Requirements for foreign banks that are or are owned by bank holding companies -(1)Foreign banks with U.S. branches or agencies that also own U.S. banks. A foreign bank that is a bank holding company and that operates a branch or agency or owns or controls a commercial lending company in the United States must comply with the requirements of this section, § 225.82 , and §§ 225.90 through 225.92 in order to be a financial holding company. After it becomes a financial holding company, a foreign bank described in this paragraph will be subject to the provisions of §§ 225.83 , 225.84 , 225.93 , and 225.94 .(2)Bank holding companies that own foreign banks with U.S. branches or agencies. A bank holding company that owns a foreign bank that operates a branch or agency or owns or controls a commercial lending company in the United States must comply with the requirements of this section, § 225.82 , and §§ 225.90 through 225.92 in order to be a financial holding company. After it becomes a financial holding company, a bank holding company described in this paragraph will be subject to the provisions of §§ 225.83 , 225.84 , 225.93 , and 225.94 .