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 |
|---|---|
| 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 |
