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Policy Discussion Papers

Umbrella Supervision and the Role of the Central Bank

Deregulation and financial consolidation have led to the development of financial holding companies-allowing commercial banking, insurance, investment banking, and other financial activities to be conducted under the same corporate umbrella-and the Federal Reserve has been named supervisor of the consolidated enterprise. This Policy Discussion Paper will show that there likely are economies of scope between the Fed’s inherent central-banking responsibilities and those of an umbrella supervisor and that these duel roles benefit both the Fed and functional regulators.

Suggested Citation

Haubrich, Joseph G., and James B. Thomson. 2005. “Umbrella Supervision and the Role of the Central Bank.” Federal Reserve Bank of Cleveland, Policy Discussion Papers No. 11.