MOTIVES FOR FINANCIAL CONGLOMERATION AND THE RISKS INVOLVED

Abstract

The paper examines the conditions required for a financial conglomerate to
exist under the EU Financial Conglomerates Directive. The data on the financial re-
sults of the largest financial conglomerates are being reviewed. Finally, the research
identifies the key characteristics of the conglomerate`s main business areas and
sheds some light on the motives for conglomeration and the risks involved.
Key words: financial conglomerate, regulated entity, cross-sectoral integration,
Financial Conglomerates Directive.