Cross-selling lending and underwriting : scope economies and incentives
- We highlight the implications of combining underwriting services and lending for the choice of underwriters and for competition in the underwriting business. We show that cross-selling can increase underwriters’ incentives, and we explain three phenomena: first, that cross-selling is important for universal banks to enter the investment banking business; second, that cross-selling is particularly attractive for highly leveraged borrowers; third, that less-than-market rates are no prerequisite for cross-selling to benefit a bank’s clients. In our model, cross-selling reduces rents in the underwriting business.
Author: | Christian LauxORCiDGND, Uwe WalzORCiDGND |
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URN: | urn:nbn:de:hebis:30-66906 |
DOI: | https://doi.org/10.1093/rof/rfn027 |
ISSN: | 1573-692X |
ISSN: | 1572-3097 |
Parent Title (English): | Review of finance |
Publisher: | Oxford University Press |
Place of publication: | Oxford |
Document Type: | Article |
Language: | English |
Date of Publication (online): | 2009/06/17 |
Year of first Publication: | 2008 |
Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
Release Date: | 2009/06/17 |
Tag: | D49; G21; G24 |
Volume: | 13 |
Issue: | 2 |
Page Number: | 27 |
First Page: | 341 |
Last Page: | 367 |
Note: | © The Author 2008. This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/2.0/uk/) which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited. |
Source: | Review of Finance (2009) 13: 341–367 ; doi:10.1093/rof/rfn027 |
HeBIS-PPN: | 214279294 |
Institutes: | Wirtschaftswissenschaften / Wirtschaftswissenschaften |
Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) | |
Wissenschaftliche Zentren und koordinierte Programme / Sustainable Architecture for Finance in Europe (SAFE) | |
Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
Licence (German): | Creative Commons - Namensnennung-Nicht kommerziell 2.0 |