What is the federal Bank Holding Company Act?

The federal Bank Holding Company Act (BHCA) is a law that applies to banks and other financial institutions that are subsidiaries of a bank holding company in the United States. The Act was created in 1956 to give the Federal Reserve System more control over the banking and finance industry. This law makes it illegal for a bank holding company to control several banks or to own both banks and non-bank entities in the same market. The BHCA is monitored by the Federal Reserve and is enforced by state and federal banking regulators. The Federal Reserve is responsible for overseeing the banks, their holding companies, and the activities of all their subsidiaries and affiliates. Banks and bank holding companies must meet certain standards and criteria to remain in compliance with the BHCA. In California, the BHCA is enforced by the California Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC). Banks must register with the government and periodically report to the FDIC and the California Department of Financial Institutions. These reports must include financial statements, management structure, banking activities, and other information related to the safety and soundness of the bank. Banks must also submit to examination by the FDIC and other banking regulators to ensure that they are operating in a manner that is consistent with the BHCA.

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What is the federal Bank Holding Company Act?

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