difference between affiliate and subsidiary of a bank holding company
In this scenario, âBâ company is an affiliate of âAâ company, while âCâ company is a subsidiary of âAâ company. A âsubsidiaryâ, also known as a daughter company, is a company that is completely or partially owned by the parent company. In layman terms, a company which owns more than 50% of another company can call the company a subsidiary company.
An âaffiliateâ is a type of inter-company relationship in which a company owns less than a majority of another companyâs stock. During an affiliate, the parent company (the main company) has some sort of relationship with another smaller company, in which it may or may not own the companyâs shares.