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Banking and commerce: how does the United States compare to other countries?

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Author Info

  • João A.C. Santos

Abstract

Historically, U.S. banks have not been permitted to invest in nonfinancial firms. Restrictions on firms' investments in banks, however, are a recent phenomenon. A comparison of U.S. and foreign regulation of affiliations between banks and nonfinancial firms shows that foreign banking laws are much more liberal. Nonetheless, data on banks' investment in shares and participations shows that they represent only a small fraction of banks' assets.

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File URL: http://www.clevelandfed.org/Research/review/1998/98-q4-santos.pdf
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Bibliographic Info

Article provided by Federal Reserve Bank of Cleveland in its journal Economic Review.

Volume (Year): (1998)
Issue (Month): Q IV ()
Pages: 14-26

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Handle: RePEc:fip:fedcer:y:1998:i:qiv:p:14-26:n:v.34no.4

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Keywords: Bank investments ; Nonbank activities;

References

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Citations

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Cited by:
  1. Haubrich, J.G. & Santos, J.A.C., 1999. "Banking and Commerce: A Liquidity Approach," Papers 9907, London School of Economics - Centre for Labour Economics.
  2. Stefan ARPING, 2002. "Banking, Commerce, and Antitrust¤," FAME Research Paper Series rp19, International Center for Financial Asset Management and Engineering.
  3. João Santos, 1998. "Commercial Banks in the Securities Business: A Review," Journal of Financial Services Research, Springer, vol. 14(1), pages 35-60, July.
  4. Santos, Joao A.C. & Rumble, Adrienne S., 2006. "The American keiretsu and universal banks: Investing, voting and sitting on nonfinancials' corporate boards," Journal of Financial Economics, Elsevier, vol. 80(2), pages 419-454, May.
  5. Santos, Joao A. C., 1999. "Bank capital and equity investment regulations," Journal of Banking & Finance, Elsevier, vol. 23(7), pages 1095-1120, July.
  6. Ferreira, Miguel A. & Matos, Pedro, 2009. "Universal banks and corporate control: evidence from the global syndicated loan market," Working Paper Series 1066, European Central Bank.
  7. Barth, James R. & Caprio, Gerard & Levine, Ross, 2000. "Banking systems around the globe : do regulation and ownership affect the performance and stability?," Policy Research Working Paper Series 2325, The World Bank.
  8. Demid Golikov, 2005. "Financial Intermediary In Monetary Economics: An Excerpt," Macroeconomics 0510018, EconWPA.

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