Lin, Jyh-Horng; Tsai, Jeng-Yan; Huang, Paichou - In: Applied Economics Letters 19 (2012) 15, pp. 1459-1463
We examine the optimal bank interest margin effects of the Gramm--Leach--Bliley Act (GLBA), particularly allowing commercial banks to engage in insurance underwriting. This article models bank equity explicitly integrating the Down-and-Out Call (DOC) option of insurance underwriting with the...