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

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  • 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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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. João Cabral dos Santos, 1995. "Bank capital and equity investment regulations," Working Paper 9515, Federal Reserve Bank of Cleveland.
  2. Joseph G. Haubrich & João A. C. Santos, 1999. "Banking and commerce: a liquidity approach," Working Paper 9907, Federal Reserve Bank of Cleveland.
  3. 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.
  4. João Cabral dos Santos, 1996. "Commercial banks in the securities business: a review," Working Paper 9610, Federal Reserve Bank of Cleveland.
  5. Demid Golikov, 2005. "Financial Intermediary In Monetary Economics: An Excerpt," Macroeconomics 0510018, EconWPA.
  6. 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.
  7. Stefan ARPING, 2000. "Banking, Commerce, and Antitrust," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 00.22, Université de Lausanne, Faculté des HEC, DEEP, revised May 2002.
  8. 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.

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