What is the Bank Holding Company Act?

The Bank Holding Company Act is a federal law that regulates the formation and operation of holding companies that own banks or other financial institutions. It was established in 1956 and is enforced by the Federal Reserve Board. The act was put in place to protect the stability of the banking system and to maintain the safety and soundness of the banking industry. The Bank Holding Company Act sets forth criteria that must be met in order for a company to qualify as a bank holding company. Companies must be formed with an initial capitalization of at least $25 million and have a minimum of 80 percent of its assets invested in banks, bank holding companies, and financial services. The Bank Holding Company Act also requires companies to file registration statements and disclose information with the Federal Reserve Board. In Oklahoma, the Bank Holding Company Act regulates the activities of companies that want to engage in activities that may have an effect on the safety and soundness of banks and other financial institutions. Companies must register with the Federal Reserve Board and follow other regulations under the act. Banking law is regulated by the Oklahoma Financial Institutions Department, which works with the Federal Reserve to ensure compliance with the Bank Holding Company Act.

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What is the Bank Holding Company Act?

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