Supervision, Regulation, and Activities of Financial Holding Companies


Summary

This practice note discusses the framework for financial holding company (FHC) regulation, including the process and criteria for a bank holding company (BHC) to become an FHC. FHCs are BHCs that are permitted to engage in a broader array of nonbanking activities and affiliate with financial services providers other than those traditionally allowed for banking organizations (prior to the passage of the GRAMM-LEACH-BLILEY ACT, 1999 Enacted S. 900, 106 Enacted S. 900, 113 Stat. 1338 (GLBA)). These expanded powers for BHCs that become FHCs enable them to better compete with other financial service providers. This practice note further discusses the nonbanking activities in which a FHC may engage, and the supervision, examination, and regulation of FHCs.