A financial holding company (FHC) is a special type of bank holding company (BHC) that may engage, either directly or indirectly through its non-bank subsidiaries, in a broad range of business activities that are deemed "financial in nature." (In contrast, BHCs that are not FHCs can generally engage only in activities that are related to the business of banking.) FHCs were authorized in 1999 under the Gramm-Leach-Bliley Act. Examples of expanded financial activities permitted to FHCs include:

To qualify as an FHC, the BHC and all of its depository institution subsidiaries must be well capitalized and well managed. The depository institution subsidiaries must also receive satisfactory Community Reinvestment Act ratings. For more information on FHCs and how they are regulated, see Practice Note, US Banking Law: Overview: Financial Holding Companies.