A holding company is a company, usually a corporation, which is created
to own the stock of other corporations, often using the stock holdings
to control the management and policies of all of them. The Federal Deposit
Insurance Corporation (FDIC) regulates bank holding companies. Under the
regulations of the FDIC, a company is a bank holding company when:
- the company directly or indirectly
or acting through one or more other persons owns, controls, or has power
to vote 25 percent or more of any class of voting securities of the bank
or company;
- the company controls in any
manner the election of a majority of the directors or trustees of the bank
or company; or
- the Board determines, after
notice and opportunity for hearing, that the company directly or indirectly
exercises a controlling influence over the management or policies of the
bank or company.
