What is a bank holding company is .?

A bank holding company is a corporation that owns one or more banks and may also engage in non-banking financial services. It is established to control and manage the operations of its subsidiary banks while providing regulatory advantages and flexibility in expanding into other financial sectors. These companies are regulated by the Federal Reserve in the United States, which oversees their capital, financial condition, and compliance with laws. Essentially, bank holding companies serve as a means for financial institutions to diversify their operations and manage risk.