Banques universelles et participations des banques dans le capital des entreprises: Quelles conséquences sur le risque bancaire ?

Laetitia Lepetit

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Abstract: This paper analyses the implications of bank equity investment in firms on the stability of the banking system under conditions of asymmetric information and moral hazard. We show that there exists a " U-shaped " relationship between the risk of the universal and the investment banks' asset and the level of their equity investment. Our theoretical and empirical results end up in favour of the choice of the European, Japan and American regulators who forbid banks from exceeding a threshold of equity investment. Such regulation must prevent banks to take excessive risks

Date: 2003
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Published in Revue Economique, 2003, 54 (4), pp.857-885. ⟨10.3917/reco.544.0857⟩

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Journal Article: Banques universelles et participations des banques dans le capital des entreprises. Quelles conséquences sur le risque bancaire ? (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00795844

DOI: 10.3917/reco.544.0857

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