Bank Holding Company Act

The Bank Holding Company Act, enacted in 1956, regulates companies that own or control banks in the U.S. to ensure financial stability and competition. It requires these companies to register with federal authorities, get approval before acquiring additional banks, and limit their activities to banking-related services. The law aims to prevent risky practices, monopolies, and protect consumers by overseeing how financial companies operate and expand. It helps maintain a safe and sound banking system, reducing the risk of financial crises.