What is the Bank Holding Company Supervision Act?

The Bank Holding Company Supervision Act is a piece of legislation within Delaware banking law that governs activities of bank holding companies. A bank holding company is a corporation or other entity that owns a controlling interest in one or more banks. The purpose of the Bank Holding Company Supervision Act is to ensure that bank holding companies maintain a high level of safety and soundness when conducting business, and its regulations are intended to protect the public from fraud and other illegal activities. The Bank Holding Company Supervision Act requires that bank holding companies have sufficient capital, as well as effective risk management and corporate governance. The Act also limits the types of non-banking activities that a bank holding company can engage in, such as insurance and securities underwriting. This is to ensure that the primary focus of the company is the banking business, and that all other activities do not present a risk to the bank. The Act also contains provisions that deal with the corporate structure and organization of bank holding companies, as well as provisions that set out the duties and obligations of the directors of the company. Finally, the Bank Holding Company Supervision Act sets out the responsibilities of the Federal Reserve Board in overseeing bank holding companies. This includes the setting of minimum capital requirements, as well as conducting examinations of bank holding companies to ensure compliance with the law.

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What is the Bank Holding Company Supervision Act?

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