Bank holding companies developed:
A) to get around the limitations on bank branching.
B) so foreign banks could open branches in the U.S.
C) to circumvent the regulation by the Office of the Comptroller of the Currency.
D) so that unit banks could combine into larger banks.

Question

Quizplus · Accepted Answer

Bank holding companies were created as a way to get around the limitations on bank branching. Prior to their creation, banks were only allowed to have one branch in a given location. However, by creating a parent holding company that owned multiple subsidiary banks, banks could effectively operate as if they had multiple branches while also bypassing regulatory restrictions.

Bank Holding Companies Developed