needs . (B) Penalty A covered financial institution that fails to meet the requirements of subparagraph (A) shall be subject to such penalties as determined appropriate by the appropriate financial regulator of such institution. (2) Approval of requests With respect to any request submitted by a covered financial institution to the appropriate financial regulator to take an action that requires the approval of the regulator, the appropriate financial regulator may only approve such request if the covered financial institution received a rating of satisfactory record of meeting community environmentally sustainable investment needs or better during the most recent examination of the covered financial institution under this section. (c) Majority-Owned institutions In assessing and taking into account, under subsection (a), the record of a nonminority-owned and nonwomen-owned covered financial institution, the appropriate financial regulator may consider as a factor capital investment, loan participation, and other ventures undertaken by such covered financial institution in cooperation with minority- and women-owned financial institutions and low-income credit unions, if such activities help meet the environmentally sustainable investment needs of the local communities in which such covered financial institution is chartered. (d) Financial Holding Company Requirement (1) In general An election by a bank holding company to become a financial holding company under section 4 of the Bank Holding Company Act of 1956 shall not be effective if— (A) the Board finds that, as of the date the declaration of such election and the certification is filed by such holding company under section 4(l)(1)(C) of the Bank Holding Company Act of 1956, not all of the subsidiary insured depository institutions of the bank holding company had achieved a rating of satisfactory record of meeting community environmentally sustainable investment needs , or better, at the most recent examination of each such institution