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Bank Holding Company |
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Bank holding company A company that owns or has controlling interest in two or more banks and/or other bank holding companies. Bank Holding Company A company that is the majority shareholder in at least one bank. A bank holding company controls the operations of the banks it owns. Bank holding companies have access to liquidity from regulators through the loans made to the banks themselves. In the United States, bank holding companies must register with the Federal Reserve and are subject to its regulation, though they may also be responsible to other regulators as well. Re-registering as a bank holding company became a favored way for investment banks and other companies to increase their liquidity in the wake of the 2008 financial crisis.
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