FRINK Linked Data Fragments server

Matches in SemOpenAlex for { <https://semopenalex.org/work/W3125752013> ?p ?o ?g. }

• W3125752013 startingPage "7" @default.
• W3125752013 abstract "How do economists view the synergies between the banking, securities, and insurance industries? This timely topic was examined by three papers; comments by an industry analyst followed. Overall, the presenters predicted further consolidation in the financial industry, each emphasizing different aspects of the benefits. Anthony Santomero and David Eckles argued in their paper that consolidation will benefit firms through revenue enhancement, rather than through cost reduction. The study by Cara Lown, Carol Osler, Philip Strahan, and Amir Sufi emphasized that banks merging with life insurance firms are likely to provide the biggest gains in terms of reduced bank risk. Lown et al. offered additional perspective by discussing the evolving bancassurance industry in Europe, while the paper by Randall Kroszner predicted that subsequent regulatory changes are likely to occur. Furthermore, Santomero and Eckles noted that arguments can be made both for and against the increased stability of the resulting financial system, and although systemic risk is an appropriate concern, enforcement of regulation, competition, and open markets can keep these issues at bay. However, in his comments on the papers, Christopher Mahoney observed that with the likely emergence of large financial conglomerates, a policy of too big to fail may be an appropriate reaction to financial distress, despite growing political pressure to do otherwise. SANTOMERO AND ECKLES Anthony Santomero and David Eckles discussed what is likely to happen in the financial sector in light of the recent regulatory and environmental changes that have occurred. The presenters began by discussing the impact that these changes would have on the operating scale of financial firms. They then reviewed five issues relating to firm size, beginning with operating costs. The existing literature, they observed, indicates that larger institutions may be more efficient in terms of average operating costs. Expenses may also be reduced if an institution can offer several products at a lower cost than separate competing institutions. Yet in reality there seems to be little cost improvement resulting from these economies of scale and scope. Santomero and Eckles argued that aggregating over many businesses adds a layer of complexity, with the result being that the overall cost structure does not seem to improve very much. The second issue they addressed was revenue enhancement. Rather than cost savings, the driver behind mergers is the potential for additional revenue. To the extent that firms can cross-sell multiple products and that customers are willing to take additional products through the same channel, benefits associated with revenue can result. Santomero and Eckles' third issue with respect to firm size is that, for some businesses, size is necessary to be competitive. Because the nonfinancial industrial sector is consolidating, the scale of the business of finance is growing. Hence, by increasing its size, a financial organization can conduct an entire transaction on its own-- something it otherwise could not have done. In other words, size itself has some positive attributes in the financial industry. The last two issues concerned whether or not larger firms are inherently more stable. On the one hand, a greater number of businesses should, according to the law of large numbers, imply greater stability. On the other hand, the businesses typically are highly correlated, which can mitigate this law. Moreover, when there are a lot of businesses, something is likely to go wrong all the time. To the extent that this phenomenon occurs, a firm's value could be more unstable, rather than more stable. Weighing all of these issues, Santomero and Eckles concluded that, on balance, the universal bank is favored. They followed with a discussion of how firms are likely to expand. If a firm is going to expand a product line, it is more likely to do so de novo. …" @default.
• W3125752013 created "2021-02-01" @default.
• W3125752013 creator A5049456100 @default.
• W3125752013 date "2000-10-01" @default.
• W3125752013 modified "2023-09-28" @default.
• W3125752013 title "Summary of Session 1 Presentations" @default.
• W3125752013 hasPublicationYear "2000" @default.
• W3125752013 type Work @default.
• W3125752013 sameAs 3125752013 @default.
• W3125752013 citedByCount "0" @default.
• W3125752013 crossrefType "journal-article" @default.
• W3125752013 hasAuthorship W3125752013A5049456100 @default.
• W3125752013 hasConcept C10138342 @default.
• W3125752013 hasConcept C139043278 @default.
• W3125752013 hasConcept C144133560 @default.
• W3125752013 hasConcept C162324750 @default.
• W3125752013 hasConcept C165556158 @default.
• W3125752013 hasConcept C17744445 @default.
• W3125752013 hasConcept C18903297 @default.
• W3125752013 hasConcept C19244329 @default.
• W3125752013 hasConcept C195487862 @default.
• W3125752013 hasConcept C199539241 @default.
• W3125752013 hasConcept C2776014549 @default.
• W3125752013 hasConcept C2777817046 @default.
• W3125752013 hasConcept C2778300220 @default.
• W3125752013 hasConcept C2779777834 @default.
• W3125752013 hasConcept C2780421641 @default.
• W3125752013 hasConcept C2986226071 @default.
• W3125752013 hasConcept C86803240 @default.
• W3125752013 hasConcept C91306197 @default.
• W3125752013 hasConceptScore W3125752013C10138342 @default.
• W3125752013 hasConceptScore W3125752013C139043278 @default.
• W3125752013 hasConceptScore W3125752013C144133560 @default.
• W3125752013 hasConceptScore W3125752013C162324750 @default.
• W3125752013 hasConceptScore W3125752013C165556158 @default.
• W3125752013 hasConceptScore W3125752013C17744445 @default.
• W3125752013 hasConceptScore W3125752013C18903297 @default.
• W3125752013 hasConceptScore W3125752013C19244329 @default.
• W3125752013 hasConceptScore W3125752013C195487862 @default.
• W3125752013 hasConceptScore W3125752013C199539241 @default.
• W3125752013 hasConceptScore W3125752013C2776014549 @default.
• W3125752013 hasConceptScore W3125752013C2777817046 @default.
• W3125752013 hasConceptScore W3125752013C2778300220 @default.
• W3125752013 hasConceptScore W3125752013C2779777834 @default.
• W3125752013 hasConceptScore W3125752013C2780421641 @default.
• W3125752013 hasConceptScore W3125752013C2986226071 @default.
• W3125752013 hasConceptScore W3125752013C86803240 @default.
• W3125752013 hasConceptScore W3125752013C91306197 @default.
• W3125752013 hasIssue "4" @default.
• W3125752013 hasLocation W31257520131 @default.
• W3125752013 hasOpenAccess W3125752013 @default.
• W3125752013 hasPrimaryLocation W31257520131 @default.
• W3125752013 hasRelatedWork W138786446 @default.
• W3125752013 hasRelatedWork W149860880 @default.
• W3125752013 hasRelatedWork W1531116535 @default.
• W3125752013 hasRelatedWork W2006879090 @default.
• W3125752013 hasRelatedWork W2050925739 @default.
• W3125752013 hasRelatedWork W2092722630 @default.
• W3125752013 hasRelatedWork W2147222673 @default.
• W3125752013 hasRelatedWork W2246628678 @default.
• W3125752013 hasRelatedWork W2280643704 @default.
• W3125752013 hasRelatedWork W2287497971 @default.
• W3125752013 hasRelatedWork W2292610305 @default.
• W3125752013 hasRelatedWork W242143254 @default.
• W3125752013 hasRelatedWork W285400799 @default.
• W3125752013 hasRelatedWork W287524231 @default.
• W3125752013 hasRelatedWork W3122084762 @default.
• W3125752013 hasRelatedWork W3123753962 @default.
• W3125752013 hasRelatedWork W3146819391 @default.
• W3125752013 hasRelatedWork W347764843 @default.
• W3125752013 hasRelatedWork W70865918 @default.
• W3125752013 hasRelatedWork W952245767 @default.
• W3125752013 hasVolume "6" @default.
• W3125752013 isParatext "false" @default.
• W3125752013 isRetracted "false" @default.
• W3125752013 magId "3125752013" @default.
• W3125752013 workType "article" @default.