Front Matter Page
Monetary and Financial Systems Department
Authorized for distribution by Anne-Marie Gulde-Wolf
Contents
I. Introduction and Summary
II. Consolidation, Internalization, and Conglomeration Trends
A. Consolidation
Overview
Evidence on growth in banking (deposit-taking institutions)
Evidence on banking industry concentration
B. Internationalization
Overview
Evidence
C. Conglomeration
Overview
Evidence
III. Implications for Financial Risk
A. Risk of Individual Financial Firms
Overview
Evidence
B. Systemic Risk Potential
Overview
Evidence
IV. Conclusions
References
Text Tables
1. Financial Assets of Deposit Money Banks, 1995 and 2000
2. Deposits and GDP for 106 Countries for 1995 and 2000
3. Percentage Change in Assets, Deposits, and GDP, 1995 and 2000
4. Asset Concentration Ratios, 1995 and 2000
5. Asset Concentration Ratio by Per Capita GDP, 1995 and 2000
6. Foreign Bank Ownership, by Region and by Per Capita GDP
7. Financial Conglomeration by Asset Size
8. Summary Statistics of Financial Conglomeration, 1995 and 2000
9. Financial Conglomeration by Classifications of Institutions, 1995 and 2000
10. Size Distribution Statistics of Conglomerates and Nonconglomerates
11. Z-index, Return on Assets, Equity Capital to Asset Ratios, and Return Volatility
12. Regression Results on Risk, Conglomeration, and Size
13. Cross-Country Correlations between Risk and Concentration Indicators, 1993–2000
14. Regressions of Largest Five-Firm Z-Indexes on Five-Firm Concentration Ratios
Figures
1. Distribution of Three-Firm Concentration Ratios, 1995 and 2000
2. Distribution of Five-Firm Concentration Ratios, 1995 and 2000
3. Distribution of Mean Foreign-Controlled Asset Ratios, 1995 and 2000
Appendices
Data on Conglomeration