A financial alliance compromise between executives and supervisory authorities

In this paper, we are looking for the best financial alliance compromise structure between the executives of the banks and insurance companies and the bank and insurance supervisory authorities in Finland. First, we studied alternative alliance structures between banks and insurance companies from the point of view of supervisory authorities. Together with leaders and experts of the supervisory authorities, we introduced eight criteria for the evaluation of the six alternative alliance structures. The evaluation was carried out by an expert panel consisting of the representatives of the supervisory authorities. In our earlier research, the financial conglomerate was preferred by bank and insurance executives to the other alternatives. The alliance models based on plain cross-selling agreements received the highest ranks in the evaluation of supervisory authorities. Under certain conditions, the financial conglomerate might be an acceptable compromise alternative for the supervisory authorities as well.