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Risks 2015, 3(2), 139-163; doi:10.3390/risks3020139

Interconnectedness of Financial Conglomerates

1
Autorité de Contrôle Prudentiel et de Résolution (ACPR), 61 rue Taitbout, Paris 75009, France
2
Centre de Recherche en Économie et Statistique (CREST), 15 Boulevard Gabriel Péri, Malakoff 92240, France
*
Author to whom correspondence should be addressed.
Academic Editor: Weidong Tian
Received: 26 March 2015 / Accepted: 11 May 2015 / Published: 21 May 2015
(This article belongs to the Collection Systemic Risk and Reinsurance)
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Abstract

Being active in both the insurance sector and the banking sector, financial conglomerates intrinsically increase the interconnections between the banking sector and the insurance sector. We address two main concerns about financial conglomerates using a unique database on bilateral exposures between 21 French financial institutions. First, we investigate to what extent to which the insurers that are part of financial conglomerates differ from pure insurers. Second, we show that in the presence of sovereign risk, the components of a financial conglomerate are better off than if they were distinct entities. Our empirical findings bring a new perspective to the previous results of the literature based on using different types of data. View Full-Text
Keywords: interconnectedness; financial conglomerate; contagion; systemic risk interconnectedness; financial conglomerate; contagion; systemic risk
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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Hauton, G.; Héam, J.-C. Interconnectedness of Financial Conglomerates. Risks 2015, 3, 139-163.

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