What does captive bank mean?

captive bank meaning in Law Dictionary

n institution designed to provide solutions to a promoter and his or her associates. Usually, a captive bank is completely owned subsidiary of a multinational set of businesses.

captive bank meaning in Business Dictionary

Wholly or partially owned subsidiary (found frequently in an income tax sanctuary) that plays its part as a lender only for the advantage of one legal entity (usually a strong) and its particular customers and manufacturers. And safe-keeping of build up, captive banking institutions might also provide merchant financial, financing, also solutions, frequently in association with commercial finance companies.