Bank Consolidation, Internationalization, and Conglomeration: Trends and Implications for Financial Risk
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Summary:
This paper documents global trends in bank activity, consolidation, internationalization, and financial firm conglomeration, and explores the extent to which financial firm risk and systemic risk potential in banking are related to consolidation and conglomeration. We find that while there is a substantial upward trend in conglomeration globally, consolidation and internationalization exhibit uneven patterns across world regions. Trends in consolidation and conglomeration indicate increased risk profiles for large, conglomerate financial firms, and higher levels of systemic risk potential for more concentrated banking systems. We outline research directions aimed at explaining why bank consolidation and conglomeration do not necessarily yield either safer financial firms or more resilient banking systems.
Series:
Working Paper No. 2003/158
Subject:
Bank deposits Banking Commercial banks Emerging and frontier financial markets Financial institutions Financial markets Financial sector policy and analysis Financial services Insurance companies Systemic risk
English
Publication Date:
July 1, 2003
ISBN/ISSN:
9781451857603/1018-5941
Stock No:
WPIEA1582003
Pages:
44
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