A bank holding company is a corporation that owns a controlling interest in one or more banks but does not itself offer banking services.

Holding companies do not run the day-to-day operations of the banks they own. However, they exercise control over management and company policies. They can hire and fire managers, set and evaluate strategies, and monitor the performance of subsidiaries’ businesses.

Bank of America, Citigroup, and JPMorgan Chase & Co. all are operated by holding companies.