Question

A subsidiary bank is rev: 05_15_2018_QC_CS-127288 a) a locally incorporated bank that is wholly owned by a foreign parent. b) a locally incorporated bank that is majority owned by a foreign parent. c) a locally incorporated bank that is partially owned (but not controlled) by a foreign parent. d) a locally incorporated bank that is wholly (or majority) owned by a foreign parent.

Answer 1

The correct answer is option b.

Step-by-step explanation:

A subsidiary bank can be defined as a type of bank that is incorporated in the country it operates but is owned majorly by a foreign bank in a different country.

Subsidiary banks do not follow the regulations applicable in the home country of the parent bank. These banks operate under the regulations of the host country it operates in.