Financial conglomeration and monitoring incentives

If combining insurance and banking services generates scope economies in terms of monitoring the customers, competition in the financial markets becomes more intense after financial conglomeration. The pro-competitive effect reduces the prices of the financial services, increases monitoring and improves financial stability. Increased monitoring allows financial regulators apply lower capital requirements for financial conglomerates.

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Year of publication:	2009
Authors:	Mälkönen, Ville
Published in:	Journal of Financial Stability. - Elsevier, ISSN 1572-3089. - Vol. 5.2009, 2, p. 105-123
Publisher:	Elsevier
Keywords:	Financial conglomerates Banking Insurance Capital regulation

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10004964167