Multibank Holding Company
Categories: Incorporation
Lots of banks. One big boss. (Likely smokin' a fat stogey, right?)
Why would it make sense to have dozens or even hundreds of banks living corporately inside of one holding company?
Risk.
When there are more banks with more exposures to more elements of the economy, diversification gets bigger and presumably better. Transaction costs likely mitigate a bit as well; volume deals in borrowing and tracking and metering and measuring and dealing with problem loans all get handled at scale generally better as well.
See: Holding Company. Very different from Snuggling Company.