Arbeitspapier

Should Banking Be Kept Separate from Commerce

In the U.S., unlike much of the rest of the world, the mixing of banking and commerce is largely prohibited. One exception is industrial loan companies (ILCs), state chartered depository institutions some of which are owned by commercial parents. In 2006, the FDIC put a moratorium on the chartering of new ILCs pending resolution of a controversy sparked by Wal-Mart's application to start up an ILC in Utah. Wal-Mart subsequently withdrew its bid. This paper reviews the major arguments that have been raised against the mixing of banking and commerce, finding most to be theoretically weak or lacking in empirical support, and discusses several efficiencies that may arise from the integration of banking and commerce.

Language
Englisch

Bibliographic citation
Series: EAG Discussion Paper ; No. EAG 08-9

Classification
Wirtschaft
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Financial Institutions and Services: Government Policy and Regulation
Antitrust Issues and Policies: General
Antitrust Law
Regulated Industries and Administrative Law
Subject
Regulation
Industrial Loan Companies
Banking
Antitrust

Event
Geistige Schöpfung
(who)
Raskovich, Alexander
Event
Veröffentlichung
(who)
U.S. Department of Justice, Antitrust Division, Economic Analysis Group (EAG)
(where)
Washington, DC
(when)
2008

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Raskovich, Alexander
  • U.S. Department of Justice, Antitrust Division, Economic Analysis Group (EAG)

Time of origin

  • 2008

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