What is a bank holding company?

Here are some common areas of power:

• Hiring managers

• Terminating managers

• Setting strategies

• Evaluating existing and proposed strategies

• Monitoring the performance of subsidiary banks

Here are some banks that are operated by holding companies:

• JP Morgan Chase and Co.

• Bank of America

• Citigroup

The Federal Reserve is the governmental entity in charge of regulating bank holding companies.

Here are some of the key highlights of bank holding companies:

• A bank holding company is a financial corporation that owns a controlling interest in a bank, or in several banks, but does not itself offer financial services related to banking.

• A one-bank holding company is a holding company for one bank, although it has a shorter history and a more flexible arrangement as an independent bank.

• There are holding companies throughout many different industries, not just in the banking and financial sectors.