Technological and Regulatory Forces in the Developing Fusion of Financial-Services Competition

Edward Kane

No 1320, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Productlines of traditionally heterogeneous financial institutions are rapidly fusing into a homogeneous blend, institutions and market structures are reshaping themselves to lower the cost of serving customer demand for financial services.This paper contends that contemporary adaptations exploit scope economies rooted in technological change and deposit-insurance subsidies to innovative forms of risk-bearing. As they reorient work flows, financial firms are simultaneously restructuring their organizations to lower net burdens from government regulation. Alternative state and federal regulatory and legislative bodies compete vigorously for the regulatory business of developing institutional hybrids. Evolution of Federal Reserve policy toward "nonbank banks" exemplifies the process.

Date: 1984-03
Note: ME
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Published as Kane, Edward J. "Technological and Regulatory Forces in the Developing Fusion of Financial-Services Competition." Journal of Finance, Vol. 39, No. 3 , (July 1984), pp. 759-772.

Downloads: (external link)
http://www.nber.org/papers/w1320.pdf (application/pdf)

Related works:
Journal Article: Technological and Regulatory Forces in the Developing Fusion of Financial-Services Competition (1984)
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:nbr:nberwo:1320

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w1320

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().