The Impact of the Gramm-Leach-Bliley Act on the Financial Services Industry

Journal of Economics and Finance 28, 3, 2004, 333-347

Posted: 16 Mar 2015

See all articles by Abdullah Al Mamun

Abdullah Al Mamun

University of Newcastle (Australia) - Newcastle Business School

M. Kabir Hassan

University of New Orleans - College of Business Administration - Department of Economics and Finance

Van Son Lai

Université Laval

Date Written: 2004

Abstract

This paper examines the impact of Gramm-Leach-Bliley Act across three main sectors of the financial services industry: commercial banks, insurance companies, and brokerage firms, taking account of the wealth effect associated with the announcement. We find that the law has a differential impact across the financial services industry. All three industries have gained due to this law with commercial banks benefiting most, followed by the insurance industry. Further, the results show that larger firms benefited more in both the banking and insurance industries and exposure to systematic risk was reduced for all sectors of the financial services industry after this regulation passed.

Suggested Citation

Al Mamun, Abdullah and Hassan, M. Kabir and Lai, Van Son, The Impact of the Gramm-Leach-Bliley Act on the Financial Services Industry (2004). Journal of Economics and Finance 28, 3, 2004, 333-347, Available at SSRN: https://ssrn.com/abstract=2578418

Abdullah Al Mamun

University of Newcastle (Australia) - Newcastle Business School ( email )

City Campus East-1
NE1 8ST
United Kingdom

M. Kabir Hassan

University of New Orleans - College of Business Administration - Department of Economics and Finance ( email )

2000 Lakeshore Drive
New Orleans, LA 70148
United States

Van Son Lai (Contact Author)

Université Laval ( email )

FSA ULaval
Quebec G1V 0A6
Canada
418-656-2131, x3943 (Phone)

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