Even the smallest of these big banks has enormously deep pockets.
What is a bank holding company?
A bank holding company is a corporate entity that controls one or several operating bank companies.
To be considered a bank holding company, a firm must:
- Hold at least 25 percent of the voting shares in the bank.
- Control the election of a majority of the directors or trustees.
- Directly or indirectly influences the management or policies of the bank
The Federal Reserve Board regulates U.S. bank holding companies.
Bank holding company example
There are more than 100 bank holding companies in the U.S. with assets greater than $10 billion. Most national banks that people are familiar with are part of bank holding companies.
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