What is the Bank Holding Company Act?

The Bank Holding Company Act is a federal law that sets up rules for companies that own multiple banks. The law was originally passed in 1956 and updated in 1970 and is set up to protect banks from over-concentration of ownership and power. In Nebraska, the Bank Holding Company Act requires any company that owns two or more banks to apply for approval from the Federal Reserve Board. The Board then evaluates the company and provides requirements for the company to meet in order to get approval. These requirements usually include keeping certain financial ratios in order, not extending credit to related companies, and making sure that the company does not grow too large. The Bank Holding Company Act is an important piece of legislation that helps protect banks in Nebraska from becoming too powerful. It helps ensure that banks are not put at risk due to over-concentration and that they are able to provide customers with reliable services. It also helps to ensure that banks are properly regulated and can stay healthy. By keeping the Bank Holding Company Act in place, banks are able to stay safe and provide reliable banking services in Nebraska.

Related FAQs

What is the Federal Reserve System?
What are the regulations surrounding banking?
What is the Investment Company Act?
What is the Bank Secrecy Act?
What is the Financial Institutions Reform, Recovery and Enforcement Act?
What is the Consumer Leasing Act?
What is the Federal Credit Union Act?
What is the Unlawful Internet Gambling Enforcement Act?
What is the National Bankruptcy Reform Act?
What is banking law?

What is the Bank Holding Company Act?

Related FAQs

Related Blog Posts