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

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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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Author notes

  1. Son Van Lai

    Present address: Department of Economics and Finance, University of New Orleans, 70148, New Orleans, LA

Authors and Affiliations

  1. Department of Commerce, Massey University, NSMC, Private Bag 102 904, Auckland, New Zealand

    Abdullah Al Mamun, M. Kabir Hassan & Son Van Lai

Authors
  1. Abdullah Al Mamun
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  2. M. Kabir Hassan
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  3. Son Van Lai
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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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