Complexity from Growth in Lines of Business: How Absent Management Occurred When Different Types of Banking Were Merged

Christian Dinesen ()
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Christian Dinesen: Dinesen Associates Ltd.

Chapter Chapter 6 in Absent Management in Banking, 2020, pp 95-116 from Springer

Abstract: Abstract The rapid growth of banks included expansion into additional lines of business. This added to the complexity of managing multiline banks. The combination of commercial deposit-taking and investment banks, with much larger combined balance sheets, enabled significantly increased trading for the banks’ own account. The mergers were often paid with shares, and many banks not already listed on stock exchanges did so in the 1980s and 1990s. Large banks with extensive geographies and new business lines made management so complex that it was sometimes absent. One example was the failure of Barings Brothers in 1995, caused by absence of management of a fraudulent trader.

Keywords: Growth; Business lines; Complexity; Management; Barings (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-35824-2_6

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DOI: 10.1007/978-3-030-35824-2_6

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