# 2026-15774: Fed Reserve Tweaks Rules for Mutual Holding Companies 2026-15774, Regulatory Modernization and Relief for Mutual Holding Companies, is a Federal Register proposed rule from Federal Reserve System published 2026-08-04, effective Comments must be submitted by October 5, 2026.; PRIA reads it as touching household money (as of 2026-08-11). - Canonical: https://policyrisk.com/federal-register/2026-15774 - As of: 2026-08-11 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Document number: 2026-15774 - Title: Regulatory Modernization and Relief for Mutual Holding Companies - Type: Proposed Rule - Agencies: Federal Reserve System - Citation: 91 FR 49490 - Published: 2026-08-04 - Effective: Comments must be submitted by October 5, 2026. - Comments close: 2026-10-05 - Significant: no - Touches household money: yes - Regulation identifier numbers: 7100-AH26 - Last updated: 2026-08-11 ## In one line Fed Reserve Tweaks Rules for Mutual Holding Companies ## Summary The Board invites comment on a notice of proposed rulemaking (proposal) to modernize the regulatory framework applicable to mutual holding companies (MHCs), primarily through proposed revisions to Regulation MM (12 CFR part 239), which governs the formation, operations, activities, and conversion of savings and loan holding companies in mutual form. The proposal would amend Regulation MM by, among other things, eliminating certain dividend waiver requirements, reducing burden associated with conversions from mutual-to-stock form, revising certain post-conversion restrictions, eliminating the requirement that subsidiary holding companies of MHCs obtain federal charters, and revising and clarifying other provisions of the regulation. The proposal also would amend the capital rule (12 CFR part 217) to clarify that certain mutual capital instruments may qualify as regulatory capital and to codify model term sheets for mutual capital certificates as appendices to the regulation. ## Effects PRIA read - Easier Dividend Waivers for MHCs: benefit, medium. If you run a thrift mutual holding company (MHC), the Board proposes to remove the annual member‑vote requirement for legacy waiver MHCs (those that waived dividends before December 1, 2009) and, for non‑legacy waiver MHCs, allow waivers if the institution affirms a member vote held within the past… - Mutual Capital Instruments Count as Regulatory Capital: benefit, high. The Board proposes to amend 12 CFR 217.20(b)(1), (c)(1), and (d)(1) to clarify that special deposits and mutual capital certificates issued by mutual banking organizations can qualify as common equity tier 1, additional tier 1, or tier 2 capital if they meet the rule's qualifying criteria. Board st… - Model Term Sheets & Charter Options Added: benefit, medium. The Board would add mutual capital certificate model term sheets as appendices to the capital rule and update the Model Charter to include optional language authorizing mutual capital certificates. Institutions would not be required to adopt the Model Charter language, and charter amendments consis… - Drop Federal‑Charter Requirement for Subsidiaries: benefit, medium. The proposal would eliminate the requirement that subsidiary (mid‑tier) holding companies of mutual holding companies obtain federal charters, reducing a prior chartering constraint on structuring MHC organizations. - Target MHC Members Keep Membership Rights: benefit, low. If a thrift mutual holding company (MHC) acquires another thrift MHC, the proposal would require that members of the target MHC receive the same membership rights in the acquiring MHC as the acquiring MHC's members, whether the thrift subsidiaries are merged or continue as separate institutions. - Lower Burden for Mutual‑to‑Stock Conversions: benefit, medium. The Board proposes to reduce regulatory burden associated with conversions from mutual‑to‑stock form and to revise certain post‑conversion restrictions; the proposal references issues such as the current 5 percent limit on repurchasing shares in the first year after conversion. The intent is to mak… ## Related documents - [2026-08298](https://policyrisk.com/federal-register/2026-08298): Regulatory Capital Rule: Community Bank Leverage Ratio Framework, 2026-04-29 - [2026-05960](https://policyrisk.com/federal-register/2026-05960): Regulatory Capital Rules: Regulatory Capital and Standardized Approach for Risk-Weighted Assets, 2026-03-27 - [2025-21626](https://policyrisk.com/federal-register/2025-21626): Regulatory Capital Rule: Modifications to the Enhanced Supplementary Leverage Ratio Standards for U.S. Global Systemically Important Bank H…, 2025-12-01 - [2025-21625](https://policyrisk.com/federal-register/2025-21625): Regulatory Capital Rule: Revisions to the Community Bank Leverage Ratio Framework, 2025-12-01 - [2026-20668](https://policyrisk.com/federal-register/2026-20668): Change in Bank Control Notices; Acquisitions of Shares of a Bank or Bank Holding Company, 2026-10-08 - [2026-20509](https://policyrisk.com/federal-register/2026-20509): Loans to Executive Officers, Directors, and Principal Shareholders of Member Banks: Bank Holding Companies, 2026-10-07 ## Sources - [2026-15774 on federalregister.gov](https://www.federalregister.gov/documents/2026/08/04/2026-15774/regulatory-modernization-and-relief-for-mutual-holding-companies) - [2026-15774 as published (PDF)](https://www.govinfo.gov/content/pkg/FR-2026-08-04/pdf/2026-15774.pdf) ## Related - [Previous: 2026-15758, Establishment of Class C Airspace and Removal of Class D Airspace; Wilmington I…](https://policyrisk.com/federal-register/2026-15758) - [Next: 2026-15777, Loans to Executive Officers, Directors, and Principal Shareholders of Member Ba…](https://policyrisk.com/federal-register/2026-15777) - [All Federal Register documents](https://policyrisk.com/federal-register) Source: PRIA, https://policyrisk.com/federal-register/2026-15774 (as of 2026-08-11).