Global Banks: Good or Good-Bye?

The Future of Large, Internationally Active Banks. Proceedings of the 18th Annual International Banking Conference, Federal Reserve Bank of Chicago (Asli Demirguc-Kunt, Douglas D. Evanoff and George G. Kaufman, eds.): 67-75

7 Pages Posted: 2 Oct 2016

See all articles by Thomas Huertas

Thomas Huertas

Goethe University Frankfurt - Institute of Law and Finance; Center for Financial Studies

Date Written: December 15, 2015

Abstract

The reform program outlined by regulators and supervisors after the financial crisis implicitly aims to create a new model for banks, one where they are small(er), simple(r) and separable. The drive toward “separability” threatens to diminish the scale and scope economies that global banks have enjoyed and opens the door to new entrants using new technology. If global banks have to be managed as a collection of “independent” subsidiaries, will this mean goodbye to global banks? Not necessarily: this article outlines how organization structures could evolve to suit both the new regulation and the new technology.

Keywords: banks, banking structure, unit banking, private equity, limited liability partnerships

JEL Classification: G01, G21, G24, G28

Suggested Citation

Huertas, Thomas, Global Banks: Good or Good-Bye? (December 15, 2015). The Future of Large, Internationally Active Banks. Proceedings of the 18th Annual International Banking Conference, Federal Reserve Bank of Chicago (Asli Demirguc-Kunt, Douglas D. Evanoff and George G. Kaufman, eds.): 67-75. Available at SSRN: https://ssrn.com/abstract=2842092

Thomas Huertas (Contact Author)

Goethe University Frankfurt - Institute of Law and Finance ( email )

Campus Westend - Grüneburgplatz 1
Frankfurt, 60323
Germany

Center for Financial Studies ( email )

Grüneburgplatz 1
Goethe University
Frankfurt am Main, 60323
Germany

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