Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/211978 
Year of Publication: 
2004
Series/Report no.: 
Bank of Finland Discussion Papers No. 10/2004
Publisher: 
Bank of Finland, Helsinki
Abstract: 
A topical concern in public-policy debate is that the current capital adequacy regulation designed for stand-alone financial institutions exhibits several weaknesses due to the emergence of large financial institutions combining several activities under common control.This paper addresses these concerns using a theoretical framework derived from the economic literature.I will first describe the possible causes of the emergence of financial conglomerates, proceed to consider the theoretical background for the regulation of financial institutions, especially insurance and banking companies, and, finally, examine the limitations of the current regulatory framework in controlling the risks in financial conglomerates.My conclusions provide little support for the view that the regulatory approach should be modified towards a more consolidated one (ie harmonization).
Subjects: 
banking
capital adequacy regulation
insurance
financial conglomerates
JEL: 
G21
G22
G28
Persistent Identifier of the first edition: 
ISBN: 
952-462-134-7
Document Type: 
Working Paper

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