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National Bank Public Welfare Investment Authority (12 CFR 24)

National banks may make investments that are primarily designed to promote the public welfare under the investment authority in 12 USC 24 (Eleventh) and the implementing regulation, 12 CFR 24. This authority allows banks to make investments if those investments primarily benefit low- and moderate-income individuals, low- and moderate-income areas, or other areas targeted by a government entity for redevelopment, or if the investments would receive consideration under 12 CFR 25.23 (the Community Reinvestment Act regulation) as a "qualified investment.”  Examples of public welfare investments include those supporting affordable housing and other real estate development, providing equity for start-up and small business expansion, and revitalizing or stabilizing a government-designated area.

If you need additional assistance, please call the Community Affairs Department at (202) 649-6420 or contact your District Community Affairs Officer.

Public Welfare Investments Authority and Regulation

Common 12 CFR 24 Questions and Answers are listed here to provide guidance on national bank investments using the public welfare authority or other appropriate national bank authority.

National Bank Public Welfare Investment "At - A - Glance" Charts  lists national bank investments made under the 12 CFR 24 authority.

Community Development Investment Precedent Letters 
The OCC posts its precedent setting community development investment letters in the Electronic Interpretations and Actions section of OCC's Web site. These investments were made consistent with the 12 CFR 24 authority and reflect precedent setting actions that are consistent with the public welfare and other requirements of the regulation. Browse index of Community Development Precedent Letters.

Quick Reference Guide to Public Welfare Investments  (PDF) describes the guidelines for community development investments covered by 12 CFR 24. It gives an easy-to-follow list of requirements and examples of how banks make investments.

Regulation W Special Analysis: Impact on Community Development Corporations (CDC)  (PDF) provides guidance for national bank public welfare investments under 12 USC 24 (Eleventh) and 12 CFR 24 that: (1) present issues under sections 23A and 23B of the Federal Reserve Act, and (2) involve a holding company's transfer of an interest in its CDC to one or more subsidiary banks.

Related News and Issuances
Publish DateIdentifierTitle
01/25/2018  NR 2018-6, Agencies to Give Favorable Community Reinvestment Act Consideration to Revitalization Activities in Disaster Areas Affected by Hurricane Maria
11/01/2013  NR 2013-170, OCC Newsletter Focuses on Public Welfare Investments in Wind Energy Projects
02/27/2013  NR 2013-34, Comptroller Speaks to Members of the National Association of Affordable Housing Lenders