The impact of the Gramm-Leach-Bliley act on the financial services industry

Abstract

This paper examines the impact of Gramm-Leach-Bliley Act across three main sectors of the financial services industry: commercial banks, insurance companies, and brokerage firms, taking account of the wealth effect associated with the announcement. We find that the law has a differential impact across the financial services industry. All three industries have gained due to this law with commercial banks benefiting most, followed by the insurance industry. Further, the results show that larger firms benefited more in both the banking and insurance industries and exposure to systematic risk was reduced for all sectors of the financial services industry after this regulation passed.

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Correspondence to Son Van Lai.

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Mamun, A.A., Hassan, M.K. & Van Lai, S. The impact of the Gramm-Leach-Bliley act on the financial services industry. J Econ Finan 28, 333–347 (2004). https://doi.org/10.1007/BF02751736

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Keywords

  • Banking Industry
  • Federal Reserve
  • Commercial Bank
  • Insurance Industry
  • Seemingly Unrelated Regression