12 CFR § 348.5 - Small market share exemption.

---
identifier: "/us/cfr/t12/s348.5"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 348.5 - Small market share exemption."
title_number: 12
title_name: "Banks and Banking"
section_number: "348.5"
section_name: "Small market share exemption."
chapter_name: "FEDERAL DEPOSIT INSURANCE CORPORATION"
subchapter_number: "B"
subchapter_name: "REGULATIONS AND STATEMENTS OF GENERAL POLICY"
part_number: "348"
part_name: "MANAGEMENT OFFICIAL INTERLOCKS"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 3207, 12 U.S.C. 1823(k)."
regulatory_source: "80 FR 79252, Dec. 21, 2015, unless otherwise noted."
cfr_part: "348"
---


# 348.5 Small market share exemption.

(a) *Exemption.* A management interlock that is prohibited by § 348.3 is permissible, if:

(1) The interlock is not prohibited by § 348.3(c); and

(2) The depository organizations (and their depository institution affiliates) hold, in the aggregate, no more than 20 percent of the deposits in each RMSA or community in which both depository organizations (or their depository institution affiliates) have offices. The amount of deposits shall be determined by reference to the most recent annual Summary of Deposits published by the FDIC for the RMSA or community.

(b) Confirmation and records. Each depository organization must maintain records sufficient to support its determination of eligibility for the exemption under paragraph (a) of this section, and must reconfirm that determination on an annual basis.