THE BENEFITS TO BANKS IN SELLING AND UNDERWRITING INSURANCE: AN EMPIRICAL EXAMINATION OF THE DELAWARE LAW
Abstract
The State of Delaware recently passed a new banking law that allows banks and bank affiliates chartered in Delaware to sell and underwrite insurance nationwide. The new laws provide two potential benefits to banks; (1) increased profits from selling insurance and (2) reduced interest rate risk exposure from underwriting insurance. We find support for increased profit potential to banks from the law, but we fail to find a reduction in the interest rate risk exposure of the banks.
Citation
Brown, C.R. and Winters, D.B. (1996), "THE BENEFITS TO BANKS IN SELLING AND UNDERWRITING INSURANCE: AN EMPIRICAL EXAMINATION OF THE DELAWARE LAW", Studies in Economics and Finance, Vol. 17 No. 1, pp. 46-68. https://doi.org/10.1108/eb028726
Publisher
:MCB UP Ltd
Copyright © 1996, MCB UP Limited