The Bank Holding Company Act (BHCA) of 1956 is a federal law that regulates the activities of bank holding companies. * The law prohibits non-banking activities and limits the kinds of investments and affiliations that these companies can have. * The BHCA also sets requirements for disclosure, capitalization, record-keeping and reporting by these companies. * Finally, the BHCA also grants authority to the Federal Reserve Board to regulate mergers, acquisitions and consolidations of bank holding companies. The Bank Holding Company Act (BHCA) has been modified over the years. The most significant changes occurred in 1970 with the passage of the Bank Holding Company Act Amendments. These amendments broadened the scope of activities that bank holding companies were allowed to engage in, including non-financial activities such as insurance and real estate. Subsequent amendments have added additional restrictions and clarified definitions within the BHCA.