Interconnectedness of Financial Conglomerates

Interconnectedness of Financial Conglomerates

Blog Article

Being active in both the insurance sector and the banking sector, financial conglomerates intrinsically increase the interconnections between the banking sector and the insurance sector.We address two main concerns about financial here conglomerates using a unique database on bilateral exposures between 21 French financial institutions.First, we investigate to what extent to which the insurers here that are part of financial conglomerates differ from pure insurers.Second, we show that in the presence of sovereign risk, the components of a financial conglomerate are better off than if they were distinct entities.

Our empirical findings bring a new perspective to the previous results of the literature based on using different types of data.