The Diversification Benefits of Universal Banking

Fabrizio Casalin and Enzo Dia

No 192, Working Papers from University of Milano-Bicocca, Department of Economics

Abstract: We find that both the aggregate issuance of bonds, and the volume of commercial and industrial loans outstanding in the US, respond to fluctuations in industrial production and interest rates, but in opposite directions. This empirical result suggests that universal banks can reduce the cyclical fluctuations of their income, by jointly providing direct lending and security underwriting services.

Keywords: Universal Banking; Diversification (search for similar items in EconPapers)
JEL-codes: G21 G24 (search for similar items in EconPapers)
Pages: 9 pages
Date: 2010-07, Revised 2010-07
New Economics Papers: this item is included in nep-ban, nep-bec and nep-cfn
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Persistent link: https://EconPapers.repec.org/RePEc:mib:wpaper:192

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