Nonbank Bank Law and Legal Definition

According to 12 CFR 225.2 [Title 12 -- Banks and Banking; Chapter II -- Federal Reserve System; Subchapter A -- Board Of Governors Of The Federal Reserve System; Part 225 -- Bank Holding Companies And Change In Bank Control (Regulation Y); Subpart A -- General Provisions; Regulations], nonbank bank means “any institution that:

(1) Became a bank as a result of enactment of the Competitive Equality Amendments of 1987 (Pub. L. 100-86), on the date of enactment (August 10, 1987); and

(2) Was not controlled by a bank holding company on the day before the enactment of the Competitive Equality Amendments of 1987 (August 9, 1987).”