Understanding Corporate Relationships: A Banker’s Guide to Subsidiaries, Sister Concerns, Associates, Joint Ventures, Conglomerates, and Groups
Introduction For bankers, understanding how different corporate entities relate to one another is more than an academic exercise—it directly impacts credit decisions, exposure limits, and regulatory compliance. Terms like subsidiary, associate company, or joint venture may sound similar, but each has a distinct legal and accounting meaning that influences how risks are consolidated and how…