Bank Holding Company regulated by Federal Reserve (BHC) compared to parent of an industrial bank regulated by the bank’s state and federal regulators (IBHC).

The Volcker Rule was intended to regulate certain trading and investment activities of banks, bank holding companies and their affiliates, such as broker-dealers. It restricts so-called proprietary trading – the purchase and sale of financial instruments for purposes of short-term profits – and sponsoring and investing in hedge funds and private equity funds.

Industrial banks do not engage in any activity not allowed for a national bank.

The NAIB is urging the FDIC review the exclusion of all fully-insured brokered deposits from the definition of the term “core deposit” used in the Uniform Bank Performance Report (“UBPR”).