The economic value of narrowly defined bank franchises has declined because

Question

Quizplus · Accepted Answer

All the given options - A, B, and C - are true statements about the declining economic value of narrowly defined bank franchises. Product line restrictions limit the ability of an FI to optimize the set of financial services it can offer, which might lead to dissatisfied customers seeking other providers with more comprehensive product offerings. Similarly, product restrictions limit the ability of FI managers to adjust to shifts in demand for financial products or take advantage of cost-saving technological innovations, which might result in inefficiencies and higher costs for the FI. Therefore, all these factors contributed to the decline in the economic value of narrowly defined bank franchises.

The Economic Value of Narrowly Defined Bank Franchises Has Declined