On the portfolio effects of financial convergence - a review of the literature
This paper reviews the literature on the effects of combining banking and nonbank financial activities on banking organizations' risk and return. In general, securities activities, insurance agency, and insurance underwriting are all riskier and more profitable than banking activities. They also have the potential to provide diversification benefits to banking organizations. While real estate agency, title abstract activities, and real estate operation are more profitable than banking, real estate development may not be. Real estate activities are riskier than banking activities in general, and their diversification benefits for banking organizations are less clear.
Volume (Year): (1999)
Issue (Month): ()
|Contact details of provider:|| Postal: P.O. Box 7702, San Francisco, CA 94120-7702|
Phone: (415) 974-2000
Fax: (415) 974-3333
Web page: http://www.frbsf.org/
More information through EDIRC
|Order Information:|| Email: |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kwast, Myron L., 1989. "The impact of underwriting and dealing on bank returns and risks," Journal of Banking & Finance, Elsevier, vol. 13(1), pages 101-125, March.
- Apilado, Vincent P. & Gallo, John G. & Lockwood, Larry J., 1993. "Expanded securities underwriting: Implications for bank risk and return," Journal of Economics and Business, Elsevier, vol. 45(2), pages 143-158, May.
- Elijah Brewer & Diana Fortier & Christine A. Pavel, 1988. "Bank risk from nonbank activities," Economic Perspectives, Federal Reserve Bank of Chicago, issue Jul, pages 14-26.
- Saunders, Anthony & Walter, Ingo, 1994. "Universal Banking in the United States: What Could We Gain? What Could We Lose?," OUP Catalogue, Oxford University Press, number 9780195080698, April.
- John H. Boyd & Stanley L. Graham, 1988. "The profitability and risk effects of allowing bank holding companies to merge with other financial firms: a simulation study," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Spr, pages 3-20.
- Simon Kwan, 1998.
"Securities activities by commercial banking firms' Section 20 subsidiaries: risk, return and diversification benefits,"
Working Papers in Applied Economic Theory
98-10, Federal Reserve Bank of San Francisco.
- Simon H. Kwan, 1998. "Securities activities by commercial banking firms' section 20 subsidiaries: risk, return, and diversification benefits," Proceedings 609, Federal Reserve Bank of Chicago.
- Gary Whalen, 1998. "The relationship between organizational form and performance: the case of foreign securities subsidiaries of U.S. banking organizations," Proceedings, Federal Reserve Bank of San Francisco, issue Sep.
- John H. Boyd & Stanley L. Graham, 1988. "The profitability and risk effects of allowing bank holding companies to merge with other financial firms: a simulation study," Proceedings 213, Federal Reserve Bank of Chicago.
- Tim S. Campbell & J. Kimball Dietrich & Mark I. Weinstein, 1985. "Some evidence on bank holding company regulation: the question of expansion into the insurance business," Proceedings 96, Federal Reserve Bank of Chicago.
- Flannery, Mark J., 1991. "Pricing deposit insurance when the insurer measures bank risk with error," Journal of Banking & Finance, Elsevier, vol. 15(4-5), pages 975-998, September.
- Simon H. Kwan, 1995. "The economics of merging commercial and investment banking," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue may19.
- Larry D. Wall & Alan K. Reichert & Sunil Mohanty, 1993. "Deregulation and the opportunities for commercial bank diversification," Economic Review, Federal Reserve Bank of Atlanta, issue Sep, pages 1-25.
- Puri, Manju, 1994. "The long-term default performance of bank underwritten security issues," Journal of Banking & Finance, Elsevier, vol. 18(2), pages 397-418, January.
- White, Eugene Nelson, 1986. "Before the Glass-Steagall Act: An analysis of the investment banking activities of national banks," Explorations in Economic History, Elsevier, vol. 23(1), pages 33-55, January.
- Ang, James S. & Richardson, Terry, 1994. "The underwriting experience of commercial bank affiliates prior to the Glass-Steagall Act: A reexamination of evidence for passage of the act," Journal of Banking & Finance, Elsevier, vol. 18(2), pages 351-395, January.
- Rodney N. Johnson & David R. Meinster, 1974. "Bank Holding Companies: Diversification Opportunities in Nonbank Activities," Eastern Economic Journal, Eastern Economic Association, vol. 1(4), pages 316-323, October.
- Rose, Peter S, 1989. "Diversification of the Banking Firm," The Financial Review, Eastern Finance Association, vol. 24(2), pages 251-280, May.
- Boyd, John H. & Graham, Stanley L. & Hewitt, R. Shawn, 1993. "Bank holding company mergers with nonbank financial firms: Effects on the risk of failure," Journal of Banking & Finance, Elsevier, vol. 17(1), pages 43-63, February. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:fip:fedfer:y:1999:p:18-31:n:2. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Diane Rosenberger)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.