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.

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What is the Bank Holding Company Act?

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