What Is a Subsidiary Bank?
A subsidiary bank is also called a "subsidiary bank". Indirect operating branches of foreign exchange banks or commercial banks that are not wholly-owned abroad. The characteristics of a subsidiary bank are as follows: An independent legal person registered in the host country is different from the name of the parent bank. It has its own balance sheet and is subject to the laws of the host country. The parent bank generally has more than 50% of the share capital in the subsidiary bank, has control over the subsidiary bank, and bears corresponding legal liabilities to the subsidiary bank. If it is registered in the name of a non-bank, the subsidiary bank can carry out non-bank business that cannot be operated by foreign branches, and can obtain higher operating income. Sub-banks are actually a form of stock banking. [1]
Subsidiary bank
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- Chinese name
- Subsidiary bank
- Features
- Wide range of operations
- Purpose
- Expanding its overseas business network
- Equity
- All or most of the equity is controlled by the head office
- A subsidiary bank is also called a "subsidiary bank". Indirect operating branches of foreign exchange banks or commercial banks that are not wholly-owned abroad. The characteristics of a subsidiary bank are as follows: An independent legal person registered in the host country is different from the name of the parent bank. It has its own balance sheet and is subject to the laws of the host country. The parent bank generally has more than 50% of the share capital in the subsidiary bank, has control over the subsidiary bank, and bears corresponding legal liabilities to the subsidiary bank. If it is registered in the name of a non-bank, the subsidiary bank can carry out non-bank business that cannot be operated by foreign branches, and can obtain higher operating income. Sub-banks are actually a form of stock banking. [1]
- Sub-banks have a wide range of operations and can engage in all business activities that can be carried out by domestic banks in the host country. In some cases, it is also possible to operate certain businesses that the host country bank cannot operate.