The Role of Financial Holdings in the Transformation of the Global Monetary and Financial System

This article analyses the growing influence of a new category of financial players — financial holding companies — on the global monetary and financial system. It explains the reasons for the strengthening of their positions, including following the Dodd-Frank Act, adopted in the United States in response to the global financial and economic crisis of 2008-2009. The article also analyses the growth dynamics of financial holding companies’ assets under management from the beginning of their expansion in 2008 to the present. It also analyses the operations and structure of BlackRock, currently the world’s largest financial holding company. A unique definition of a financial holding company is provided. The role of financial holding companies in the global monetary and financial system is defined, and their impact on its transformation is assessed.