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: -Key Takeaways. A subsidiary is a company whose parent company is a majority shareholder that owns more than 50% of all the subsidiary company’s shares. An affiliate is used to describe a company with a parent company that possesses 20 to 50% ownership of the affiliate.

Detailed explanation-3: -Fully owned: Deposit Insurance and Credit Guarantee Corporation of India (DICGC), Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), Reserve Bank Information Technology Private Limited (ReBIT), Indian Financial Technology and Allied Services (IFTAS), Reserve Bank Innovation Hub (RBIH).

Detailed explanation-4: -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).

Detailed explanation-5: -In the business world, affiliated companies are often simply called affiliates. The term is sometimes used to refer to companies that are related to each other in some way. For example, Bank of America has many different affiliated companies including Bank of America, U.S. Trust, Landsafe, Balboa, and Merrill Lynch.