Banq (term)
From Wikipedia, the free encyclopedia
Banq (also Banc, banc-corp, bancorp, or bancorporation) is an intentionally erroneous spelling of the word bank, but pronounced the same way, adopted by companies who are not banks but wish to use the word "bank" in their names in spite of statutes that may prohibit such usage of the word.
In the United States, the commerce departments of state governments generally prohibit or restrict the use of certain words in the names of corporations unless those corporations are legitimate chartered banks. For example, words prohibited by the state of Louisiana[1] include bank, banker, banking, savings, safe deposit, trust, trustee, and credit union.
The evasive nature of the word does not necessarily indicate that an imposter is attempting to fraudulently impersonate a bank. One notable example is a company called Cachet Banq[2], an ACH (automated clearing house) processing service that performs automated banking transactions for payroll processing. The company doesn't claim to offer any banking services, such as deposits or loans, and would only be able to legally include the word "bank" in its name in its home state of California with the approval of the California Department of Financial Institutions[3].
A similar example includes a company called Wine Banq[4], whose name clearly suggests it has nothing to do with the banking industry.
Naming laws vary from jurisdiction to jurisdiction as well as their interpretations. Notable counter-examples include blood banks as well as sperm banks such as the Oregon International Canine Semen Bank LLC.[5]
For instance, if the original company is known as Bank of America, then the new investment banking entity may be known as Banc of America Securities LLC. If the original company is known as Bank of Manhattan, then its insurance business might be known as "Banc of Manhattan Insurance" and its holding company might be called "Manhattan Bancorp". This practice originates from legal necessity: Under the laws of most states, a corporation may only use the word "bank" in its name if it is a registered and federally insured financial institution.
[edit] See also
[edit] References
- ^ Louisiana.gov, Document Compliance Checklist, section on Name Availability
- ^ Cachet Banq website
- ^ California Department of Financial Institutions FAQ
- ^ Wine Banq, http://winebanq.com.au
- ^ International Canine Semen Bank homepage
