Commercial banks in investment banking: conflict of interest or certification role?

Article Abstract:

The viability of securities underwriting by commercial banks and investment houses is examined in terms of ex ante pricing in a pre-Glass-Steagall period. Banks are considered better informed because of their access to private information. However, since banks engage in loan-making, underwriting by investment houses carries a more credible character. Minimal conflicts of interest were implied by the higher prices established by bank underwritings compared to investment houses.

Investment Banking and Securities Dealing, Investment Banking, Security brokers and dealers, Services, Investment banks

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The impact of contingent liability on commercial bank risk taking

Article Abstract:

A negative relationship exists between contingent liability and commercial bank risk taking. An analysis of data from 1900 to 1915 revealed that the implementation of stricter contingent liability had resulted to depreciation in equity and risky asset holding. It also had resulted to asset volatility while the potential to increase risky asset investment during net worth declines was much lower.

Economic aspects, Liability insurance, Liability (Law), Legal liability

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Universal banking and the performance of German firms

Article Abstract:

An empirical investigation of the impact of universal banks on corporate performance in Germany is set out in detail.

Germany, Corporate governance, Corporations, Corporate finance

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