A bank holding company is a company that controls one or more banks, but does not necessarily engage in banking itself.[1] The compound bancorp (banc/bank + corp[oration]) or bancorporation is often used to refer to such companies as well, particularly in the United States.
United States
In the United States, a bank holding company, as provided by the Bank Holding Company Act of 1956 ( et seq.), is broadly defined as "any company that has control over a bank".[2] All bank holding companies in the US are required to register with the Board of Governors of the Federal Reserve System.
Regulation
The Federal Reserve Board of Governors, under Regulation Y has responsibility for regulating and supervising bank holding company activities, such as establishing capital standards, approving mergers and acquisitions and inspecting the operations of such companies. This authority applies even though a bank owned by a holding company may be under the primary supervision of the Office of the Comptroller of the Currency or the Federal Deposit Insurance Corporation.
Bank holding company status
Becoming a bank holding company makes it easier for the firm to raise capital than as a traditional bank. The holding company can assume debt of
United Kingdom
In the United Kingdom, the Bank of England refers to bank holding companies as “parent financial holding companies” or “parent mixed financial holding companies.”[5][6]
See also
- Banq (term)
- Gramm–Leach–Bliley Act
External links
References
- Arthur O'Sullivan, Steven M. Sheffrin. Economics: Principles in action Pearson Prentice Hall, 2003^
- Bank Holding Company Act FDIC^
- Morgan Stanley Granted Federal Bank Holding Company Status By U.S. Federal Reserve Board of Governors retrieved 2011-04-26^