Financial system design in the Asia Pacific context: costs and benefits of universal banking

Considers universal banking’s role in the evolution of national financial systems, notably with respect to their role in overall economic performance. Deals with conceptual and empirical evidence regarding mergers and acquisitions (M&A) in the financial services industry, with special relevance to the Asia‐Pacific region. Develops a typology of intra‐ and inter‐sectoral M&A transactions among banks, insurance companies and securities firms, and examines the global deal flow during the 11‐year 1985‐1995 period. Discusses the dynamics of M&A transactions in the financial services industry, notably with respect to exploitation of economies of scale and economies of scope that are core to the universal banking concept. Develops the implications for the Asia‐Pacific region, with reference to the static and dynamic efficiency properties of national financial systems.