It is more difficult for multibank holding companies to realize economies of scale if they allow subsidiary banks to retain key decision-making authority.

Question

Quizplus · Accepted Answer

Multibank holding companies can achieve economies of scale by consolidating certain operations and resources across subsidiary banks. However, if each subsidiary bank retains decision-making authority and operates independently, it can impede the ability to achieve efficiencies across the organization, ultimately making it more challenging to realize economies of scale.

It Is More Difficult for Multibank Holding Companies to Realize