We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
Understanding the Depository Institution Holding Company: Definition and Importance
Definition & Meaning
A depository institution holding company is a type of financial organization that controls one or more depository institutions, such as banks or savings associations. Specifically, it refers to either a bank holding company, which oversees banks, or a savings and loan holding company, which manages savings associations. A savings and loan holding company may directly or indirectly control a savings association or another company that is also a savings and loan holding company. It is important to note that this term does not include bank holding companies that are registered under the Bank Holding Company Act of 1956.
Table of content
Legal Use & context
The term "depository institution holding company" is commonly used in banking and financial law. It is relevant in contexts such as regulatory compliance, mergers and acquisitions, and financial reporting. Legal professionals may encounter this term when dealing with matters related to banking regulations, financial stability, and corporate governance. Users can manage certain legal forms and procedures related to this term using templates from US Legal Forms, which are drafted by real attorneys.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A company that owns several local banks and oversees their operations is classified as a bank holding company.
Example 2: A corporation that manages multiple savings associations and controls their activities is identified as a savings and loan holding company.
Relevant laws & statutes
Key legislation includes the Bank Holding Company Act of 1956, which outlines the regulatory framework for bank holding companies. This act establishes the requirements for registration and oversight of these entities.
State-by-state differences
State
Key Difference
California
State regulations may impose additional requirements on holding companies.
Texas
Texas has specific rules regarding the capital requirements for holding companies.
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Differences
Bank Holding Company
A company that controls one or more banks.
Specifically focuses on banks, whereas depository institution holding companies can include savings associations.
Savings and Loan Holding Company
A company that controls one or more savings associations.
Only pertains to savings associations, while depository institution holding companies encompass both banks and savings associations.
Common misunderstandings
What to do if this term applies to you
If you are involved with a depository institution holding company, it is essential to understand your regulatory obligations. You may want to consult legal professionals for guidance. Additionally, you can explore US Legal Forms for templates that can help you manage related legal documents effectively.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.