Capital Market Opinion (Ceased)
2013 Oct/29
Growth of Financial Holding Companies and Synergy Creation
October 29, 2013
PDF
- Summary
- Financial holding companies are high-cost organizations, and unless they create enough synergy to cover the high costs, their raison d'etre (reason or purpose for existence) disappears. In this regard, Korea’s financial holding companies should examine whether their structure is arranged for synergy creation. Also, financial authorities should look into whether there are any constraints to FHCs’ synergy creation.