Global Bank Regulation: Principles and Policies

Chapter 7

Banks in Corporate Groups

Ownership and Affiliation

The question of who owns—or should be allowed to own—a bank is crucial to the licensing decision. In Chapter 6, we examined the regulatory scrutiny of the persons—whether legal or natural—who own banks through standards of fitness and propriety. In this chapter, we look at a related aspect of bank ownership—the question of what types of firms should be allowed to own or affiliate with banks. First, we examine a bank’s affiliation with, or ownership by, a commercial or industrial firm.¹ Second, we consider a bank’s affiliation with or ownership by other financial institutions such as insurance companies or securities firms. Traditionally, Anglo-Saxon countries imposed a clear separation ...