One-Bank Holding Companies For Community Banks
Ford, Joseph M.
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Provides a working understanding of the basic principles and issues involved in the formation of a one-bank holding company. The holding company vehicle can offer substantial advantages for bank owners and managers in numerous ways; nevertheless, each situation should be assessed on its own merits to determine whether these advantages will outweigh the costs and disadvantages. If circumstances are favorable, the holding company can become an important instrument in preserving local ownership of a community bank, allowing tax-efficient private control, and expanding operational flexibility. Progressive bank management and legal counsel should take a new look at the opportunities available through use of the holding company to enable the small community bank to prosper in the competitive financial environment of the '80s.