Double Leverage

Posted in Finance, Accounting and Economics Terms, Total Reads: 1234

Definition: Double Leverage

Double holding is an indirect way for banks to have more access to debt financing. Thus when a bank holding company offers a debt to another subsidiary bank to acquire a large equity stake in the subsidiary, such a financing method is called double holding. Such debts are financed by the returns on the stocks held by the holding company.

Usually banks have a strict capital requirement structure which doesn’t allow them to hold debt more than a specified limit, thus double holding can be used as a way to provide them access to more capital to fulfill their requirements.


Browse the definition and meaning of more terms similar to Double Leverage. The Management Dictionary covers over 7000 business concepts from 6 categories.

Search & Explore : Management Dictionary

Share this Page on:
Facebook ShareTweetShare on G+Share on Linkedin