Why are bank holding companies developing rapidly?

The bank holding company system is the most popular and fastest developing in the United States. This is because the United States has implemented a single banking system for a long time, which leads to the disadvantages of weak financial strength, high risk and weak market competitiveness of commercial banks.

It is the result of evading the government's management of setting up branches. At present, this form of organization has become the most attractive banking organization in the United States and some other developed countries. By 2004, nearly 6,000 bank holding companies operating in the United States controlled more than 90% of the total assets of the American banking industry, and at the same time, more than 6,300 commercial banks were affiliated with bank holding companies.

The financial holding company system is also called the joint-stock company system. Financial holding refers to a modern commercial bank organization form in which a group establishes a shareholding company, and then the shareholding company controls and shares in more than two banks and non-bank financial institutions.

Legally speaking, although these banks and non-bank financial institutions are independent and finance has independent legal person status, their business and management policies are controlled by the same equity company.

There are two types of financial holding companies, namely non-bank holding companies and bank holding companies. The former is organized by large non-financial enterprises and controls the main shares of some banks; The latter is a holding company formed by a large bank or financial enterprise acquiring or controlling the shares of several small and medium-sized banks.