The policy debate on whether to strengthen or to remove the legal barriers between banking and commerce has paid little … part of a two-part study, provides an overview of the potential gains of integrating banking and commerce. Economic theory ….S. experience with limited openings between banking and nonbank activities suggests that the most common combinations were banks …

possible benefits from combining banking and commerce, including portfolio diversification, the creation of internal capital … specific industries they choose, while corporate management interested in moving into banking might need to settle for somewhat … lower returns to achieve a substantial reduction in risk. -- banking and commerce ; portfolio diversification …