Operating Subsidiary(Banking) Law and Legal Definition

Subsidiaries are institutions operating under the instructions of the originator. A subsidiary engages only in the activities permitted by the main institution. In banking, national banks operate some banking activities through companies called operating subsidiaries. Operating subsidiaries are owned and controlled by a national bank. These operating subsidiaries perform services such as loans, mortgages, and leases. Stock of operating subsidiaries can be sold to non-thrift investors.