These banks, known as nonbank banks
, did not fit the Act's definition of a bank but did offer most banking services.
. Section 4(f) of the BHC Act was amended by section 107 of the GLB Act.
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.
Average state profitability ratios were also affected in the 1980s and 1990s by the existence of credit card banks and other limited purpose banks and nonbank banks. 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
. Thus the traditional barriers are already partially breached.
Two sections of the bill would eliminate limitations that have been applied to nonbank banks. Section 223 would allow nonbank banks, and FDIC-insured credit card 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 that the fifty-seven companies operating nonbank banks divest these institutions.
Two provisions of the draft bill would eliminate limitations that have been applied to nonbank banks. 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.
1405 would eliminate a number of important limitations that have been applied to nonbank banks
. 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.
(6.)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.