BHC
Business & Finance abbreviation · Banking
| Stands for | Bank holding company |
|---|---|
| Categories | Business & Finance |
BHC stands for Bank holding company, a banking abbreviation.
Company that owns or controls one or more banks, regulated in the United States by the Federal Reserve under the Bank Holding Company Act of 1956. Most large US banking groups are organized as BHCs that own a bank subsidiary and other businesses.
Example: Goldman Sachs and Morgan Stanley became BHCs in September 2008 to gain access to Federal Reserve support.
Usage notes
BHCs are subject to capital, stress-testing and activity restrictions at the holding-company level. A BHC that meets certain standards can elect to be a financial holding company (FHC), allowing it to underwrite securities and sell insurance. The structure lets groups issue debt and equity at the parent level.
Related abbreviations
More banking abbreviations
- ALLL – Allowance for loan and lease losses
- ALM – Asset-liability management
- AML – Anti-money laundering
- ATM – Automated teller machine
- BACS – Bankers' Automated Clearing Services
- BG – Bank guarantee
- BIC – Business Identifier Code
- BIN – Bank identification number
- BSA – Bank Secrecy Act
- BSB – Bank-State-Branch
- CAR – Capital adequacy ratio
- CASA – Current account and savings account