The efficiency implications of financial conglomeration

Arbeitspapier

This paper studies the competitive and efficiency implications of financial conglomeration driven by cost-efficiency gains in monitoring credit and insurance customers.The analysis shows that conglomeration is conducive to tougher competition in the credit market and increases profit in insurance.The aggregate profit in the financial sector does not increase, because the conglomerates pass the cost-efficiency gains on to the borrowers in full.More competitive market for financial services also reduces the aggregate risk in the financial markets, indicating that capital requirements in both sectors should be lower in the presence of financial conglomerates

Object Details

• ISBN: 952-462-152-5
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Bank of Finland Discussion Papers ; No. 17/2004

Classification and Topics

• Classification: Wirtschaft ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Insurance; Insurance Companies; Actuarial Studies ; Corporate Finance and Governance: Government Policy and Regulation ; Antitrust Issues and Policies: General
• Subject: financial conglomerates ; banking ; insurance ; capital regulation

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Mälkönen, Ville
• Event: Veröffentlichung
• (who): Bank of Finland
• (where): Helsinki
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/211985
• Last update: 10.03.2025, 11:45 AM CET