Puerto Rico Economic Pulse ©

February 2001: Thou Shall Not

An Analysis of Puerto Rico’s New Banking & Insurance Laws

During this millennium year, the rules that defined the boundaries between insurance, investment banking, and commercial banking sectors for more than half a century are gone. Powered by the new federal law Gramm-Leach-Bliley Act of 1999, businesses in these sectors are creating holding companies that will enable them to tap into each other’s markets. What are the advantages and disadvantages of commercial banking participation in the sale of insurance products? Learn the implications of the participation of the banking sector in the local insurance business in Puerto Rico.