In simple sense Bank holding company. The holding company is called the parent company are called operating companies. The parent company controls and manages the operating banks under the group. So, It is simply a corporation chartered for the purpose of holding the stock of one as more banks. This type of bank is widely used in developed countries like the USA. UK etc. By 1990. the really 6000 bank holding companies operating in united states had control over 9000 banks and they owned 90% of the industry's total assets. The basic reason behind the rapid increase in bank holding companies is their greater ease of access to capital markets in raising fund and their ability to use higher leverage.
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