The Gramm--Leach--Bliley Act: optimal interest margin effects of commercial bank expansion into insurance underwriting
AbstractWe examine the optimal bank interest margin effects of the Gramm--Leach--Bliley Act (GLBA), particularly allowing commercial banks to engage in insurance underwriting. This article models bank equity explicitly integrating the Down-and-Out Call (DOC) option of insurance underwriting with the standard call option of commercial banking activities. We conclude that commercial banks may not appear to benefit from broader product mix when the expansion of insurance underwriting is relatively large scale or insurance asset quality is relatively low.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor and Francis Journals in its journal Applied Economics Letters.
Volume (Year): 19 (2012)
Issue (Month): 15 (October)
Contact details of provider:
Web page: http://www.tandf.co.uk/journals/routledge/13504851.html
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.