What is a Banking Syndicate?

The group banking system is also called the multi-bank holding company system. Symmetry of a single bank holding company. A banking organization that controls two or more commercial banks through a holding company. It is mainly one of the organizational forms of commercial banks in the United States. The so-called bank holding company is a monopoly organization that controls the equity of a commercial bank by holding a certain percentage (above 25% in the US) of voting shares. It generally does not directly operate banking business, but specializes in buying stock control amounts of banks and other financial institutions in order to control and manipulate them and determine their important personnel and operating policies. ^[1]

Group banking system

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The group banking system is also called the multi-bank holding company system. Symmetry of a single bank holding company. A banking organization that controls two or more commercial banks through a holding company. It is mainly one of the organizational forms of commercial banks in the United States. The so-called bank holding company is a monopoly organization that controls the equity of a commercial bank by holding a certain percentage (above 25% in the United States) of voting shares. It generally does not directly operate banking business, but specializes in buying stock control amounts of banks and other financial institutions in order to control and manipulate them and determine their important personnel and operating policies. ^[1]

Chinese name

Group banking system

nickname

Bank holding company system

Symmetric

Single bank holding company

Nature

Bank organization form

There are two types of bank holding companies: one is a single bank holding company that controls one bank; the other is a multi-bank holding company that controls more than two banks, also known as a group bank. Group banks in the United States already existed at the beginning of the 20th century, and achieved considerable development after World War II. In the history of the United States, the unit banking system has been implemented for a long time, and commercial banks are not allowed to establish branches. Although it has been relaxed since the beginning of the 20th century, it is still greatly restricted. In order to break through such restrictions and facilitate increasingly fierce competition, US commercial banks have established multi-bank holding companies. By using a holding company to change multiple banks into affiliates, it plays a similar role as setting up branches and expanding banks. Although the names of banks appear to be different. At the same time, these holding companies have also established or controlled numerous non-bank affiliates. This system has actually made large banks put a series of small and medium banks and financial institutions under their control. ^[1]