The bank holding company system can solve two problems in the development of banking business through the arrangement of holding companies. One is to avoid the legal restrictions on the establishment of cross-state branches, and the other is to realize business diversification by setting up subsidiaries. When only one bank is controlled, it is a single bank holding company system; When there are two or more holding banks, it is a multi-bank holding company system. This form of banking organization is the most popular in the United States.
The chain banking system once prevailed in the midwest of the United States and was developed to make up for the deficiency of the single banking system. The chain bank system has the same function as the bank joint-stock company system, but the difference is that there is no joint-stock company, that is, there is no need to set up a joint-stock company.