On the portfolio effects of financial convergence - a review of the literature
Simon Kwan and
Elizabeth Laderman (liz.laderman@gmail.com)
Economic Review, 1999, 18-31
Abstract:
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.
Keywords: Banking Act of 1933; Bank investments; Risk (search for similar items in EconPapers)
Date: 1999
References: Add references at CitEc
Citations: View citations in EconPapers (48)
Downloads: (external link)
https://www.frbsf.org/wp-content/uploads/18-31.pdf Full Text (text/html)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:fip:fedfer:y:1999:p:18-31:n:2
Ordering information: This journal article can be ordered from
pubs.sf@sf.frb.org
Access Statistics for this article
More articles in Economic Review from Federal Reserve Bank of San Francisco Contact information at EDIRC.
Bibliographic data for series maintained by Federal Reserve Bank of San Francisco Research Library (reference.library@sf.frb.org).