Financial Holding Company


Financial Holding Company

In the United States, a financial company that engages in nonbanking activities. For example, a financial holding company may be a bank, but it also may offer insurance and investment products. A financial holding company must have at least 85% of its assets in financial services and must divest all nonfinancial services within 10 years of its registration as an FHC. Financial holding companies are regulated by the Federal Reserve.