What is the captured bank?

captured banks are financial institutions that are partially or completely owned by another entity and are usually created for the exclusive use of companies or companies that own the bank. It is not unusual for the captured bank to serve as a tax haven for owners. Depending on the structure of the captured banks, the owners may also allow a small number of clients to use the services of the bank, while those clients usually have a business relationship with the owner or entities.

The scope of services offered by a bank is usually very similar to those offered by other banking institutions. Like Komerční banka, they can expand different types of loans in the business strategy of business banking, a captured financial institution will offer it. The captured bank also contains basic banking services such as check and savings accounts, car loans and residential real estate and other offers. The difference is that the services are typical is only available to select just a few than to open the public in general.

One of the main advantages of the captured bank is the ability to create tax benefits for institution owners and, to a lesser extent for all others who are allowed to obtain services from the bank. In many countries, the financial rules apply to other types of banks do not apply to a captured bank. This means that the bank can be rented with lower requirements in terms of capital and support and also has more control over how business is carried out. The reason for relaxed laws concerning this type of bank is due to the fact that services are offered only to a relatively small group, while other banking institutions can freely select customers from all areas of life.

One of the advantages of a captured bank is the ability to organize funds between a small group of participants ways that are usually not possible for other models. Although this arrangement can work in favor of those who use the services of the bank is importantIt is realized that protection and guarantees associated with other types of banks may or may not be provided to customers captured banks. For this reason, participation in this type of banking organization of careful control of how the bank will be organized and how much risk to this participation.