Convergence in Financial Services Industry

The financial services industry is undergoing drastic changes. One of the main challenges for managers of financial institutions as well as for regulators and supervisors is the growing convergence between different sectors within the financial services industry. Given the many dimensions of financial convergence, a complete view on the types of convergence, the degree of integration and the products involved is called for. This paper presents a theoretical perspective on the convergence in the financial services industry and discusses the various aspects related to regulation and supervision of financial conglomerates. It also details the preparations required with regard to regulation and supervision of financial conglomerates in India.