TY  - JOUR
AB  - Examines the traditional function of commercial banks as financial intermediaries between deficit and surplus sectors. Fundamental to this function has been the assumption that banks can intermediate at lower costs than those prevailing with direct financing arrangements, but developments in corporate wholesale financing over the past 20 years or so have undermined this “cost imperative” for large companies. This has resulted in disintermediation of commercial banks by large companies and introduced a large degree of product innovation in wholesale corporate finance. These innovations have meant that commercial banks have become more investment bank oriented. Traditional on‐balance sheet services for large companies have been largely replaced by off‐balance sheet activities such as providing investment advice and making placements. These changes in business activity have had an effect on the commercial banks’ principal sources of income and the risks inherent in their business. Innovations in corporate wholesale banking have implications which go beyond the corporate wholesale market and have changed the commercial banks’ “business philosophy” and methods of management.
VL  - 1
IS  - 2
SN  - 1460-1060
DO  - 10.1108/14601069810217266
UR  - https://doi.org/10.1108/14601069810217266
AU  - Howcroft Barry
PY  - 1998
Y1  - 1998/01/01
TI  - The dynamics of change innovation and risk in corporate wholesale finance
T2  - European Journal of Innovation Management
PB  - MCB UP Ltd
SP  - 85
EP  - 93
Y2  - 2024/09/19
ER  -