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Permissible Non-Bank Activity

Last updated 29th Nov 2022


The term permissible non-bank activity refers to the offering of financial services by a bank holding company. Permissible non-bank activities can be conducted directly by a bank holding company, or through one of their operating subsidiaries.


Bank holding companies may establish operations classified as nonbank banks. These companies can engage in what are termed permissible non-bank activities. The word "permissible" refers to regulations that permit these companies to engage in these activities, without being subject to the restrictions placed on true banks. Examples of permissible non-bank activities include:

  • Servicing loans and extending credit to consumers.
  • Appraisal of real estate as well as personal property. This includes tangible as well as intangible assets.
  • Intermediary services relating to commercial real estate financing, such as the transfer of title and estimating the risk of real estate projects.
  • Authorizing merchants to accept personal checks for the payment of goods and services.
  • Collection of overdue accounts receivable.
  • Maintaining credit history of consumers and providing that information to companies granting credit to consumers.
  • Services relating to asset management such as the liquidation of loans.

Related Terms

non-bank financial institution, nonbank bank, financial institution, financial holding company, risk pooling institution

Moneyzine Editor

Moneyzine Editor