IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-1-349-11211-1_7.html
   My bibliography  Save this book chapter

Commercial Banks, Investment Banks, Conglomeration, and the Financial Structure of Firms

In: Capital Markets in the Development Process

Author

Listed:
  • John H. Welch

    (Federal Reserve Bank of Dallas)

Abstract

Commercial banks historically have been the key institutions in the Brazilian financial system. They were affected directly by the following developments in different degrees over the last twenty years: (1) the institution of formal financial indexation to the inflation rate and the subsequent strengthening of the secondary market for ‘pre-fixed indexed’ assets — LTNs, certificates of deposits, bills of exchange, etc. — and ‘post-fixed indexed’ assets — mainly ORTNs — in the so-called ‘open market’; (2) competition from non-bank intermediaries; (3) the ability to contract foreign loans through Central Bank Resolution 63; and (4) the explicit promotion by the Brazilian government of financial conglomeration. It should be noted that the importance of non-bank competition vis-à-vis commercial banks was dampened by the process of conglomeration because commercial banks are usually the central institution in a financial conglomerate. The typical financial conglomerate in Brazil is centred on a commercial bank; other members are an investment bank, a ‘financeira’, a broker and dealer.1

Suggested Citation

  • John H. Welch, 1993. "Commercial Banks, Investment Banks, Conglomeration, and the Financial Structure of Firms," Palgrave Macmillan Books, in: Capital Markets in the Development Process, chapter 6, pages 152-180, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-11211-1_7
    DOI: 10.1007/978-1-349-11211-1_7
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-1-349-11211-1_7. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.