Which of the following is a true statement concerning bank holding companies?
A) Bank holding companies own few large banks.
B) Bank holding companies are an important advantage to circumvent restrictive branching regulations.
C) The McFadden Act has prevented bank holding companies from establishing branch banks.
D) Bank holding companies can own only banks.

Question

Quizplus · Accepted Answer

Bank holding companies are a way for banks to expand their operations without violating restrictive branching regulations. By owning multiple banks under the holding company, banks can operate in multiple locations without technically having branches. This allows them to serve a wider customer base and compete more effectively with larger banks.

Which of the Following Is a True Statement Concerning Bank