Investor Glossary-bank holding companyInvestor Glossary-bank holding companyInvestor Glossary-bank holding companyInvestor Glossary-bank holding companyInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Bank Holding Company

The HTML to link to this page
 

A bank holding company is a company that owns or control over 25% of a bank. A company that owns or controls more than 25% of a bank holding company is also considered a bank holding company. A bank holding company is regulated pursuant to the Bank Holding Company Act of 1956, as amended. A bank holding company is required to register with the Board of Governors of the Federal Reserve System. In 1966, the Bank Holding Company Act of 1956 was amended to detail acquisitions of bank holding companies. In 1970, the Bank Holding Company Act of 1956 was further amended to limit the business activities of a bank holding company to bank related activities only. However, in 1999, the Gramm-Leach-Bliley Act (i.e. Financial Service Modernization Act) deregulated bank holding companies. Under this act, a bank holding company could elect to become a financial holding company. Upon filing a declaration with its particular reserve bank, the bank holding company, as a financial holding company, was able to purchase investment firms or insurance companies. As a financial holding company, a bank holding company could also create an affiliate to handle investments and insurance services. In 2008, as a result of several bankruptcies, buy-outs, and government take overs of many major financial institutions (i.e. Bear Sterns, Fannie Mae, Freddie Mac, Merrill Lynch, Lehman Brothers, etc.), the US government took actions to ensure that a bank holding company was no longer able to act as an investment bank. Bank holding companies were once again required to focus on banking activities.



Rate this Bank Holding Company definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: in escrow, wholly-owned subsidiary, risk management, phantom income, class C shares, deferred tax, minority interest, 1031 exchange, command economy, stock market close, VIX, 144a, average price per share, cancelled check, deferred revenue, 401a, 1035 exchange, EBITDA, required rate of return, debt service coverage, option premium, current ratio, margin rate, open position, limit order, reverse mortgage, FICO score, Zero Cost Collar, covered put, ex-dividend, FTSE, real GDP, liquidity ratio, LIBOR, labor relations, balance sheet, implied volatility, Key Rate Duration, irrevocable trust, diluted share, quality assurance, retained earnings, stock split, inflation, APR, ex-dividend date, dividends payable, annual return, per diem


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use