USF St. Petersburg campus Faculty Publications
Relaxing Glass-Steagall provisions: Wealth and risk effects on foreign banks and their domestic corporate customers.
Document Type
Article
Publication Date
2003
ISSN
1042-444X
Abstract
We provide evidence that expanding the permissible scale of Bank Holding Company (BHC) securities activities in the US redistributes wealth from foreign banks and their domestic customers to domestic BHCs. However, removing prudential interaffiliate firewalls to permit BHCs to freely pursue synergies from the joint performance of banking and securities activities results in wealth losses for all interest groups. Securities activity deregulation increases the systematic risk for the foreign bank sector. Our evidence highlights that the application of the US regulatory policy of national treatment, which seeks to provide equality of competitive opportunity to foreign banking institutions operating in domestic markets, results in competitive inequities.
Language
en_US
Publisher
Elsevier
Recommended Citation
Narayanan, R.P., Rangan, N.K. & Sundaram, S. (2003). Relaxing Glass-Steagall provisions: Wealth and risk effects on foreign banks and their domestic corporate customers. Journal of Multinational Financial Management, 13, 465-482. doi: 10.1016/S1042-444X(03)00021-5
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.
Comments
Citation only. Full-text article is available through licensed access provided by the publisher. Members of the USF System may access the full-text of the article through the authenticated link provided.