You are currently serving as president and chief executive officer of a unit bank that has been operating out of its present location for five years. Due to the rapid growth of households and businesses in the market area served by the bank and the challenges posed to your share of this market by several aggressive competitors, you want to become a branch bank by establishing satellite offices. Please answer the following questions:

a. What laws and regulations have a bearing on where you might be able to locate the new facilities and what services you may offer?

b. What advantages would your branch be likely to have over the old unit bank? What disadvantages are likely to come with adding branch offices? Any ideas on how you might minimize these disadvantages?

c. Would it be a good idea to form a holding company? What advantages could a holding company bring to your bank? What are the potential disadvantages?