Bank Consolidation, Internationalization, and Conglomeration: Trends and Implications for Financial Risk

45 Pages Posted: 28 Jan 2006

See all articles by Gianni De Nicolo

Gianni De Nicolo

Johns Hopkins University - Carey Business School; CESifo (Center for Economic Studies and Ifo Institute)

Philip Bartholomew

Independent

Jahanara Zaman

Independent

Mary Zephirin

Independent

Multiple version iconThere are 2 versions of this paper

Date Written: July 2003

Abstract

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.

Keywords: Bank Consolidation, Internationalization, Conglomeration, Financial Risk

JEL Classification: G21

Suggested Citation

De Nicolo, Gianni and Bartholomew, Philip and Zaman, Jahanara and Zephirin, Mary, Bank Consolidation, Internationalization, and Conglomeration: Trends and Implications for Financial Risk (July 2003). IMF Working Paper, Vol. , pp. 1-45, 2003. Available at SSRN: https://ssrn.com/abstract=879234

Gianni De Nicolo (Contact Author)

Johns Hopkins University - Carey Business School ( email )

100 International Drive
Baltimore, MD 21202
United States
(410) 234-4507 (Phone)

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Philip Bartholomew

Independent

No Address Available

Jahanara Zaman

Independent

No Address Available

Mary Zephirin

Independent

No Address Available

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