A foreign banking office that is separately incorporated in the host country is:
A)a correspondent bank.
B)a representative office.
C)a bank subsidiary.
D)an Edge Act corporation.

Question

Quizplus · Accepted Answer

A bank subsidiary is a separate legal entity that is incorporated in the host country and operates under the laws and regulations of that country. It is distinct from the parent bank and has its own capital and management structure. Therefore, it is the correct choice for this question. A correspondent bank is a bank that provides services to another bank, such as facilitating transactions or providing access to financial markets. A representative office is a local office established by a foreign bank to engage in marketing and other non-banking activities. An Edge Act corporation is a special type of U.S. chartered bank that is allowed to conduct international banking activities.

A Foreign Banking Office That Is Separately Incorporated in the Host