What is ‘One-Bank Holding Company’
A corporation that holds at least a quarter of the voting stock of a commercial bank. One-bank holding companies led to the creation of leveraged bank holding companies. These entities are under the supervision of the Federal Reserve.
Explaining ‘One-Bank Holding Company’
One-bank holding companies began to appear in the late 1960s. The leveraged entities that sprung from them freed commercial banks from their dependence on customer deposits for making loans. Bank holding companies were allowed to issue commercial paper in capital markets.
Further Reading
- Emerging Financial Conglomerate: Liberalization of the Bank Holding Company Act, The – heinonline.org [PDF]
- Benefits of bank diversification: The evidence from shareholder returns – www.jstor.org [PDF]
- Are bank holding companies a source of strength to their banking subsidiaries? – papers.ssrn.com [PDF]
- Market reaction to the formation of one-bank holding companies and the 1970 Bank Holding Company Act Amendment – www.sciencedirect.com [PDF]
- The One-Bank Holding Company Conglomerate: Analysis and Evaluation – heinonline.org [PDF]
- Bank holding companies: Diversification opportunities in nonbank activities – www.jstor.org [PDF]
- The effect of state banking laws on holding company bank – research.stlouisfed.org [PDF]
- Diversification, organization, and efficiency: Evidence from bank holding companies – books.google.com [PDF]
- The regulation of bank holding companies – www.jstor.org [PDF]
- The nonbank activities of bank holding companies – heinonline.org [PDF]
