These banks are independent in law, but their business and management policies are under the control of a unified equity company, which is the result of evading the management of branches set up by the government.
At present, this form of organization has become the most attractive form of bank organization in the United States and some other developed countries.
There are two kinds of bank holding companies: non-bank holding companies and bank holding companies.
The former is formed by a large enterprise whose main business is not banking; The latter is organized by a big bank and other small banks are subordinate to it.
The advantage of bank holding company system lies in that it can effectively expand the total capital, enhance the strength of banks, improve their ability to resist risks and make up for the shortcomings of single banking system; The disadvantage is that it is easy to cause excessive concentration of financial power, which affects the operational vitality of banks to some extent.
There are 12 national small and medium-sized joint-stock commercial banks: China Merchants Bank, Shanghai Pudong Development Bank, China CITIC Bank, China Everbright Bank, Huaxia Bank, Minsheng Bank, China Guangfa Bank, Industrial Bank, Ping An Bank, hengfeng bank, Zheshang Bank and Bohai Bank.