Definition

Noun: A bank holding company is a specific type of holding company whose primary business is to own or control one or more banks. It exercises control through ownership of a significant portion of the bank's voting stock.

Usage

This term is used in finance, economics, and regulatory contexts to describe the corporate structure that owns banks. - A bank holding company allows for the centralized control of multiple banking institutions. - Regulatory approval is often required to form a bank holding company.

Examples

Advanced Usage

• "to become a bank holding company": This phrase describes the process by which a corporation registers as such with financial regulators, often to access different forms of capital or to engage in a broader range of activities.
  • During the financial crisis, several investment firms chose to become bank holding companies to gain access to emergency lending facilities.

Variants and Related Words

• Holding Company (n): A company that exists to own shares of other companies, controlling their policies and management.
• Financial Holding Company (n): A type of bank holding company that is permitted to engage in a wider set of financial activities, such as insurance underwriting or securities dealing.

Synonyms

• Bank parent company
• Bank owner corporation

Related Phrases

• "subject to bank holding company regulation": Under the oversight and rules specific to such entities.
  • The firm's new structure made it subject to bank holding company regulation.

Noun

1. a holding company owning or controlling one or more banks