Commercial Bank Diversification : the Risk and Return Trade-off

• Autorzy: Oskar Kowalewski
• Języki publikacji: EN

Abstrakty

EN

In major countries commercial banking is increasingly combined with securities, investment banking, insurance and other financial or non-financial activities. The regulatory barriers against such combinations are being dismantled and the financial systems around the world are beginning to move increasingly towards the universal banking system. In this study, I examined the potential diversification benefits for commercial banks from conducting non-bank activities. By examining diversification benefits, I attempt to answer the question whether the universal banking system is an effective organizational structure for a new, emerging banking system and will prevail in the long run. To answer the question, I examined the universal bank as a firm and therefore conducted merger simulations of commercial banks with non-banking firms. The main findings of this study are that commercial banks diversification into non-banking activities could produce risk-return trade-off. (fragment of text)

Słowa kluczowe

EN

Commercial banks; Banking system; Banking risk; Diversification of banks

PL

Banki komercyjne; System bankowy; Ryzyko bankowe; Dywersyfikacja banków

• Czasopismo: Emergo. Journal of Transforming Economies and Societies
• Rocznik: 2003
• Tom: 10
• Numer: nr 4
• Strony: 16--29

Twórcy

autor

Oskar Kowalewski

• Leon Koźmiński Academy of Entrepreneurship and Management, Poland

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