These banks, known as nonbank banks
, did not fit the Act's definition of a bank but did offer most banking services.
The general overdraft prohibitions of section 4(f)(3) of the BHC Act are discussed for controlled subsidiary banks of grandfathered holding companies of nonbank banks
(those existing on March 5, 1987), including when certain overdrafts are permissible.
Differences in average ROA and ROE for states in the 1980s were influenced by at least two special factors: extraordinarily large provisions taken by large regional and money center banks to cover anticipated losses from loans to LDCs, and the proliferation of generally high-profit credit card banks, other limited purpose banks, and the so-called nonbank banks in states permitting these institutions.
Unlike full-service commercial banks, limited purpose and nonbank banks specialize in a particular banking product - such as credit cards - and do not offer a full range of commercial banking services.
The issue will be widely debated, but commercial companies already own thrifts and nonbank banks
It would also liberalize the divestiture requirements that apply when companies violate the nonbank bank operating limitations and allow nonbank banks to acquire assets from credit card banks.
At that time, the Congress chose not to require that the fifty-seven companies operating nonbank banks divest these institutions.
Section 221 would allow nonbank banks to offer business credit cards, even when these business loans are funded by insured demand deposits.
At that time, the Congress chose not to require the fifty-seven companies operating nonbank banks to divest these institutions.
For example, section 208 would greatly enhance the ability of nonbank banks
to expand their banking operations by allowing them to acquire any undercapitalized bank.
The Board has determined that nonbank banks
such as corporate central credit unions and bankers banks may have access to the discount window if they voluntarily maintain reserves.
I assume that is one of the reasons why so many securities firms own nonbank banks
in the United States and own banks in foreign countries.