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Bank Holding Company Act of 1956, as amended (BHC Act)
Practical Law Glossary Item 2-503-0086 (Approx. 2 pages)
Glossary
Bank Holding Company Act of 1956, as amended (BHC Act)
The federal statute regulating the acquisition, ownership and control of banks by companies (12 U.S.C. §§ 1841-1850). The BHC Act consists of three primary sections:
- Section 2 defines the BHC Act's operative terms, including "bank", "bank holding company", "company", "control", "financial holding company", and "subsidiary".
- Section 3 governs the acquisition and ownership of banks and bank assets by bank holding companies and companies seeking to become bank holding companies.
- Section 4 governs the acquisition and ownership of non-banking organizations by bank holding companies, as well as the regulation of financial holding companies.
For more information on the BHC Act and how bank holding companies are regulated, see Practice Note, US Banking Law: Overview. For information on control issues associated with investments in banks under the BHC Act, see Practice Note, Investments Involving Banks: Control Issues.