EconPapers    
Economics at your fingertips  
 

Should Banking Be Kept Separate from Commerce

Alexander Raskovich
Additional contact information
Alexander Raskovich: Economic Analysis Group, Antitrust Division, U.S. Department of Justice

No 200809, EAG Competition Advocacy Papers from Department of Justice, Antitrust Division

Abstract: In the U.S., unlike much of the rest of the world, the mixing of banking and commerce is largely prohibited. One exception is industrial loan companies (ILCs), state chartered depository institutions some of which are owned by commercial parents. In 2006, the FDIC put a moratorium on the chartering of new ILCs pending resolution of a controversy sparked by Wal-Mart's application to start up an ILC in Utah. Wal-Mart subsequently withdrew its bid. This paper reviews the major arguments that have been raised against the mixing of banking and commerce, finding most to be theoretically weak or lacking in empirical support, and discusses several efficiencies that may arise from the integration of banking and commerce.

Pages: 28 pages
Date: 2008-08
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
https://www.justice.gov/atr/public/eag/236665.pdf (application/pdf)

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:doj:compad:200809

Access Statistics for this paper

More papers in EAG Competition Advocacy Papers from Department of Justice, Antitrust Division Department of Justice Antitrust Division 450 Fifth Street NW Washington, DC 20530. Contact information at EDIRC.
Bibliographic data for series maintained by Tung Vu ().

 
Page updated 2021-06-13
Handle: RePEc:doj:compad:200809