ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A subsidiary bank is a type of foreign entity that is located and incorporated in a foreign country but is majority-owned by a parent corporation in a different nation. Subsidiary banks only have to operate under the laws and regulations of the host country.

Detailed explanation-2: -A foreign bank branch is a type of foreign bank that is obligated to follow the regulations of both the home and host countries. Banks often open a foreign branch to provide more services to their multinational corporate clients.

Detailed explanation-3: -A foreign branch is another location of your company operating in another country, while a subsidiary is a new business in a foreign country.

Detailed explanation-4: -Share. A bank branch is a physical location of a banking corporation, such as Chase, Bank of America or Wells Fargo. These buildings are technically referred to as “brick-and-mortar” branches, and they provide face-to-face service for customers of a bank.

Detailed explanation-5: -Banks open their branches in those countries where expected rate of economic growth is higher and the banking system is on average less efficient. Branches are more preferable when foreign operations are smaller in size and do not have a retail orientation (Cerutti et al., 2007; Fiechter et al., 2011).