Which of the following is NOT a corporate practice required of bank holding companies?
Which of the following is NOT a corporate practice required of bank holding companies?
Bank subsidiaries typically need to conduct their operations in a safe and sound manner and must be insured by the FDIC to ensure the protection of depositor funds. They also might need to file notices with the Federal Reserve under various circumstances. However, the specific requirement for a bank subsidiary to file a notice with the Federal Reserve before offering a new product is not typically mandated as a corporate practice specifically required of bank holding companies.
While it is common for bank subsidiaries to be insured by the Federal Deposit Insurance Corporation (FDIC) to protect depositors' funds, this requirement is not strictly a corporate practice of bank holding companies. Rather, it is a regulatory requirement for banks themselves to ensure the safety of customer deposits.