Ecommerce research paper

This Letter has attempted to lay out the incentives banks might have to engage in commercial activities and to explain why policymakers are hesitant to permit these relationships. Since the Glass-Steagall barriers are in place, it is difficult to say whether the gains to linking banking and commerce would be greater or less than the potential costs. Under the best of conditions, regulators need to be vigilant lest the safety net be exploited. Clearly, this task would be made more difficult if banks are allowed to affiliate with commercial firms. But one of the aims of this Letter has been to suggest that the potential benefits of linking banking and commerce are real and could grow in the future. If, someday, lawmakers choose to augment bank powers, they should proceed cautiously and with a mind to ensuring that the safety net does not extend beyond the banking sector.

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Ecommerce research paper

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