What is Section 106 of the Bank Holding Company Act?
Section 106 of the Bank Holding Company Act Amendments of 1970 generally prohibits a bank from tying the availability or price of a product or service to the purchase by a customer of another product or service offered by the bank or its affiliates.
Are bank holding companies regulated?
Bank holding companies are regulated by the Federal Reserve. Banks that are not owned by holding companies are regulated primarily by the Office of the Comptroller of the Currency, although U.S. banking regulations are so complex and far-reaching that a total of five federal agencies are involved.
What triggers an anti-tying risk?
In order to prevail on a claim for a violation of the anti-tying restrictions, the borrower needs to show three things: (1) the bank conditioned the extension of credit upon the borrower’s obtaining or offering additional credit, property, or services to or from the bank or its holding company; (2) the arrangement was …
What is a traditional banking product?
For purposes of the regulation, “traditional bank product” means a loan, discount, deposit, or trust service. National banks, operating subsidiaries of national banks, and federal branches and agencies of foreign banks must comply with the anti-tying provisions.
What can a bank holding company do?
The so-called “laundry list” of permissible activities for bank holding companies includes the ability to engage in: extending credit and servicing loans; activities related to extending credit; leasing personal or real property; operating non-bank depository institutions; trust company activities; financial and …
What is the purpose of the bank Holding Company Act?
An Act to define bank holding companies, control their future expansion, and require divestment of their nonbanking interests.
What are anti-tying rules?
The purpose of anti-tying regulations are “to prohibit anticompetitive practices which require bank customers to accept or provide some other service or product or refrain from dealing with other parties in order to obtain the bank product or service they desire.” S.
Is price discrimination a tie?
Tying (informally, product tying) is the practice of selling one product or service as a mandatory addition to the purchase of a different product or service. Tying may also be a form of price discrimination: people who use more razor blades, for example, pay more than those who just need a one-time shave.
What is Section 106 process?
Section 106 Review Process. The Section 106 review process is a consultive process that must be completed prior to the initiation of demolition, construction, and ground disturbing activities. Federal agencies often look to those applying for grants, loans, licenses, or permits to initiate the consultation with the SHPO.
What is Section 106 review?
The Section 106 review process is intended to ensure that preservation values are factored into federal agency planning and decision-making. Federal agencies or their federally delegated authorities are required to provide information about their projects and determine whether they might affect historic properties.
What is a bank holding company Act?
The Bank Holding Company Act of 1956 (12 U.S.C. § 1841, et seq.) is a United States Act of Congress that regulates the actions of bank holding companies.
What is the definition of a bank holding company?
Under the Bank Holding Company Act of 1956, administered by the Federal Deposit Insurance Corporation (FDIC), a bank holding company is defined as ” any company which has control over any bank or over any company that is or becomes a bank holding company by virtue of this Act.
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