Dynamic Weighted Comprehensive Assessment Model of the Advantages of Financial Holding Companies

Abstract

At the post-crisis era, financial holding company is still an inevitable trend of the development of both domestic and foreign financial industry. Researches on the six advantages of Financial Holding Companies have become a hot academic and industry issue. In this paper, we create the dynamic weighting comprehensive evaluation model by centralizing the first five advantages together into the last one, economies of scope; compare the advantages of financial holding companies on business performance and risk-control over traditional banks. Model results show that financial holding company outstrips traditional banks in terms of business performance, risk control ability.