Business Glossary

entity holding less than a majority of the voting common stock of another related company, or in which both companies are subsidiaries of a third company. Often the same management oversees and operates both companies. Interrelationships exist between the activities of the entities.

In general: two companies are affiliated when one owns less than a majority of the voting stock of the other, or when both are subsidiaries of a third company.Banking: organization that a bank owns or controls by stock holdings, or which the bank's shareholders own, or whose officers are also directors of the bank.