Banq (term)
Encyclopedia
Banq is an intentionally erroneous spelling of the word bank
, but pronounced the same way. It has been adopted by companies which are not banks but wish to appear as such, and satisfy legal restrictions on the usage of the word bank.
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 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, an ACH
(automated clearing house) processing service that performs automated banking transactions for payroll
processing. The company does not claim to offer any banking services, such as deposits or loan
s, 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.
A similar example includes a company called Wine Banq, 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 bank
s and sperm bank
s.
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 has obtained a banking charter under state or federal banking laws.
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
, but pronounced the same way. It has been adopted by companies which are not banks but wish to appear as such, and satisfy legal restrictions on the usage of the word bank.
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 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, an ACH
Automated Clearing House
Automated Clearing House is an electronic network for financial transactions in the United States. ACH processes large volumes of credit and debit transactions in batches. ACH credit transfers include direct deposit payroll and vendor payments. ACH direct debit transfers include consumer payments...
(automated clearing house) processing service that performs automated banking transactions for payroll
Payroll
In a company, payroll is the sum of all financial records of salaries for an employee, wages, bonuses and deductions. In accounting, payroll refers to the amount paid to employees for services they provided during a certain period of time. Payroll plays a major role in a company for several reasons...
processing. The company does not claim to offer any banking services, such as deposits or loan
Loan
A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower....
s, and would only be able to legally include the word "bank" in its name in its home state of California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
with the approval of the California Department of Financial Institutions.
A similar example includes a company called Wine Banq, 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 bank
Blood bank
A blood bank is a cache or bank of blood or blood components, gathered as a result of blood donation, stored and preserved for later use in blood transfusion. The term "blood bank" typically refers to a division of a hospital laboratory where the storage of blood product occurs and where proper...
s and sperm bank
Sperm bank
A sperm bank, semen bank or cryobank is a facility that collects and stores human sperm mainly from sperm donors, primarily for the purpose of achieving pregnancies through third party reproduction, notably by artificial insemination...
s.
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 has obtained a banking charter under state or federal banking laws.