Investment banks gain access to more stable source of funds
Combining commerical and investment banks enables the investment banking arms to fund operations using comparatively stable deposits rather than the more volatile money markets.
Immediately related elementsHow this works
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The Global Financial Crisis Â»The Global Financial Crisis
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Long-term causes of the financial crisis? Â»Long-term causes of the financial crisis?
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Unintended consequences of earlier public policy choices Â»Unintended consequences of earlier public policy choices
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Investment banks incentivised to move into riskier activities Â»Investment banks incentivised to move into riskier activities
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How were investment banks incentivised to increase risk? Â»How were investment banks incentivised to increase risk?
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Allowing mixing of commercial and investment banking in 1990s Â»Allowing mixing of commercial and investment banking in 1990s
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Enabled commerical and investment banking conglomeration Â»Enabled commerical and investment banking conglomeration
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Investment banks gain access to more stable source of funds
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