Federal regulation of bank holding companies

an analysis of the Bank holding company act of 1956, as amended by Charles G. Blaine

Publisher: Bureau of National Affairs in Washington

Written in English
Published: Downloads: 56
Share This


  • United States.


  • Bank holding companies -- United States.

Edition Notes

Includes bibliographical references.

Intermediate holding company (“IHC”) requirement. Implementing a major change in the U.S. regulation of foreign banks, the Federal Reserve required FBOs with $50bn or more in U.S. non-branch or non-agency assets to establish an IHC by July 1, Holding companies are subject to a variety of laws, regulations and policies designed to ensure their safe and sound operation and protect the subsidiary depository institutions. Two statutes form the "backbone" for the supervision of holding companies and their ownership: the Bank Holding Act and the Change in Bank Control Act. United States. In the United States, a bank holding company, as provided by the Bank Holding Company Act of (12 U.S.C. § (a)(2)(A) et seq.), is broadly defined as "any company that has control over a bank". All bank holding companies in the US are required to register with the Board of Governors of the Federal Reserve System.. Regulation. The Federal Reserve Board of Governors, .   A bank holding company is a corporation that owns a controlling interest in one or more banks but does not itself offer banking services. Bank holding companies are regulated by the Federal.

Federal Reserve Bank of Minneapolis: Pursuing an Economy that works for all of us. Beige Book Research We conduct world-class research to inform and inspire policymakers and the public. Regulation, and Bank Holding Company Expansion Into Nonbanking.   Regulation Y is a Federal Reserve action that regulates corporate bank holding company practices as well as certain practices of state-member banks. Practices or issues that fall under Regulation. Supervision and Regulation Director and Management Resources. Directors and management of banks, bank holding companies, and savings and loan holding companies should find the following information helpful. Additional information on Regulations, Policies, and Guidance and Banking and Economic Data is available elsewhere on this website. The Federal Reserve Bank of St. Louis’ supervision and regulation department is responsible for examining and inspecting state-chartered banks that are members of the Federal Reserve System, bank holding companies, savings and loan holding companies and financial holding companies. The boundaries of the Federal Reserve’s Eighth District.

1 day ago  Because IBs are exempt from the definition of "bank" as set forth in the Bank Holding Company Act (BHCA) 3, the parent companies of IBs are not "bank holding companies" as defined in the BHCA and are not subject to the BHCA's activities restrictions or Federal Reserve Board (FRB) regulation and supervision; as such, although commercial and.

Federal regulation of bank holding companies by Charles G. Blaine Download PDF EPUB FB2

The new third edition of Federal Bank Holding Company Law by Melanie Fein is a comprehensive revision of a work already hailed as the definitive treatise on the subject. Building on and updating the previous edition written by Ms. Fein and the late Pauline Heller, it features close examination of the Dodd-Frank Wall Street Reform and Consumer Protection Act and its impact on bank holding.

The book continues to provide in-depth coverage of the entire framework of bank holding company law, including current legislative and regulatory developments and the latest Federal Reserve Board orders and interpretive Federal regulation of bank holding companies book.

The Bank Holding Company Supervision Manual provides guidance for conducting inspections of bank holding companies and their nonbank subsidiaries. Sec. Authority, purpose, and scope. (a) Authority. This part 1 (Regulation Y) is issued by the Board of Governors of the Federal Reserve System (Board) under section 5(b) of the Bank Holding Company Act ofas amended (12 U.S.C.

(b)) (BHC Act); sections 8 and 13(a) of the International Banking Act of (12 U.S.C. and ); section 7(j)(13) of the Federal Deposit. Bank holding companies should furnish written notification to their district Federal reserve Bank within 10 days after financial contract activities are begun by the parent or a nonbank subsidiary.

Holding companies in which the parent or a nonbank subsidiary currently engage in financial contract activity should furnish notice by Ma the Small Bank Holding Company and Savings and Loan Holding Company Policy Statement (12 CFRappendix C) to expand the appli-cability of the policy statement.

The interim final rule raised the asset threshold of the policy statement from $1 billion to $3 billion in total Bank Holding Company Supervision Manual.

Under the Bank Holding Company Act, a bank holding company may elect to be a financial holding company (FHC). The Federal Reserve's National Information Center (NIC) website can be used to search for bank holding companies that have elected to be treated as FHCs.

Bank Holding Companies/Savings and Loan Holding Companies/Change in Control - Letters. Novem (PDF) Letter to Anne E. Robinson advising that The Vanguard Group, Inc.

and affiliated entities collectively may acquire up to 25 percent (for purposes of the Bank Holding Company Act or the Home Owners’ Loan Act), and up to 15 percent (for purposes of the Change in Bank.

Federal Bank Holding Company Law also provides guidance on bank acquisitions by foreign banks, securities firms and insurance companies, and contains coverage of the current legislative and regulatory developments, including the latest Federal Reserve Board orders and interpretive letters.

§ Acquisition of subsidiary and tying arrangement: Federal Reserve Board proceedings; application for authorization; competitor as party in interest and person aggrieved; judicial review § a. Securities holding companies § Prohibitions on proprietary trading and certain relationships with hedge funds and private equity funds.

The BHC Act and Federal Reserve Regulation Y promulgated thereunder provide a number of presumptions upon which companies rely to avoid making controlling investments, including a presumption of non-control where a first company holds less than 5% of any class of voting securities of a second company.

§ Bank holding company's subsidiary banks owning shares of nonbanking companies. § Bank holding company indirectly owning nonbanking company through subsidiaries. § Bank holding company acquiring stock by dividends, stock splits or exercise of rights.

In acting on applications filed under the Bank Holding Company Act, the Board has adopted, and continues to follow, the principle that bank holding companies should serve as a source of strength for their subsidiary banks. A contrary interpretation would impair the right that member banks controlled by bank holding companies would otherwise have to invest, subject to the limitations of section 24A of the Federal Reserve Act, in stock of companies holding their bank premises; and such a result was not, in the Board's opinion, intended by the Bank Holding Company Act.

Covers several aspects of bank holding companies, from permissible activities through operations. This book addresses such significant subjects as the Federal Reserve Board's supervisory framework for complex banking organizations, including guidance concerning capital adequacy; enhanced enforcement authority of federal regulators, and more.4/5(1).

A bank holding company's failure to meet its obligation to serve as a source of strength to its subsidiary bank(s), including an unwillingness to provide appropriate assistance to a troubled or failing bank, will generally be considered an unsafe and unsound banking practice or a violation of Regulation Y, or both, particularly if appropriate.

Electronic Code of Federal Regulations (e-CFR) Title Banks and Banking; Chapter II. FEDERAL RESERVE SYSTEM; Subchapter A. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM; Part BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL (REGULATION Y). Its Purposes, Implementation and Effects.

Download 5th Edition By Kenneth Spong. This book covers many different aspects of banking regulation. Among these are the basic purposes of banking regulation in the United States, the historical development of our regulatory system, the basic powers of banks and bank holding companies, and the structure and general authority of the bank supervisory.

Although the focus of this article is the Federal Reserve Board regulations regarding changes in control of bank holding companies, it is fair to say that given the intricacy of control determinations, the CBCA is likely one of the most inadvertently violated banking statutes currently on the books.

which the Board, by regulation, has determined to be permissible for bank holding companies under section 4 (c) of the Bank Holding Company Act of [ 12 U.S.C. (c) ], unless the Board, by regulation, prohibits or limits any such activity for savings and loan holding companies; or.

The Federal Reserve’s Small Bank Holding Company Policy Statement applies only to BHCs with less than $1 billion in assets. Yet in Marchthe Senate passed a bill to increase the threshold to $3 billion. At the current threshold, the Policy Statement applies to.

The second major component of banking regulation is the regula-tion of bank holding companies. Nonbank subsidiaries of bank hold-ing companies face activity restrictions similar to those faced by banks.8 Opportunities for geographic expansion are also limited.' Fi-nally, bank holding companies can be formed only if they can.

[Table of Contents] [Previous Page] - Bank Holding Company Act § Investment adviser activities. (a) Effective February 1,the Board of Governors amended § (a) of Regulation Y to add ""serving as investment adviser, as defined in section 2(a)(20) of the Investment Company Act ofto an investment company registered under that Act" to the list of activities it has.

Bank Holding Companies Presented by Mike Lochmann and George Sand regulation or regulatory order • Holding companies are deemed to be • Prior toa unitary SLHC that owned only one federal savings bank (and no commercial bank) could also engage in any financial.

The Federal Reserve is the consolidated supervisor for all bank, financial, and savings and loan holding companies (referenced as “bank holding companies” in this article). For decades, the majority of banks in the U.S.

have operated under the auspices of the bank holding company structure because of the advantages they have found in the. Summary: The Federal Reserve Board has issued a notice of proposed rulemaking proposing revisions to Regulations Y and Regulations LL.

The proposal would revise and clarify the standards for determining when a company exercises controlling influence over another company for purposes of the Bank Holding Company Act and the Home Owners’ Loan Act. This part 1 (Regulation Y) is issued by the Board of Governors of the Federal Reserve System (Board) under section 5(b) of the Bank Holding Company Act ofas amended (12 U.S.C.

(b)) (BHC Act); sections 8 and 13(a) of the International Banking Act of (12 U.S.C. and ); section 7(j)(13) of the Federal Deposit Insurance Act.

Under regulations issued by the Small Business Administration, a small bank holding company, bank, or savings and loan holding company is defined as having assets of $ million or less (collectively, small banking organizations). [ 17] A. The Bank Holding Company Act of (12 U.S.C.

§et seq.) is a United States Act of Congress that regulates the actions of bank holding companies. The original law (subsequently amended), specified that the Federal Reserve Board of Governors must approve the establishment of a bank holding company and that bank holding companies headquartered in one state are banned from.

(the “Dodd-Frank Act”), jurisdiction over savings and loan holding companies (“SLHCs”) was transferred from the Office of Thrift Supervision (the “OTS”) to the Board of Governors of the Federal Reserve System (the “Board”) effective J SLHCs are companies (other than bank holding companies) that control one or more.

Regulations brings you key laws and regulations in the most user-friendly form available on the Net. Each regulation or law has its own table of contents page, to show you what's in each section.

Then, each section of most regulations is laid out on a separate html page to .The Federal Reserve Board has announced revisions to Regulation Y that are intended to improve the competitiveness of bank holding companies by eliminating unnecessary regulatory burden and operating restrictions, and by streamlining the application and notice process.

BHC Act addressed only multibank holding companies, that is, corporations controlling 25 percent or more of the voting shares of at least two commercial banks. The amendment to the BHCA extended the Federal Reserve’s authority to single-bank holding companies. 3 The BHCA (§ ) defines source of financial strength to mean, “the.