Operating subsidiaries are the optimal structure for banking companies, because they are safer than universal banks but more efficient than holding companies.

That's the conclusion of Bernard Shull and Lawrence J. White of New York University's Stern School of Business. In a paper to be published in the May issue of the Journal of Banking Law, they compare the three structures to determine which one offers the most efficiency with the least amount of risk and government subsidy.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.