Comment on Avery, Bostic, Calem, and Canner
Article Abstract:
Empirical evidence shows that consolidation in the banking industry reduces the level of bank branching in a particular area as measured by the number of offices per capita. Specifically, the greater the extent of overlap in the postal ZIP code, the greater the extent of decline in per capita bank branching at the neighborhood level, although overlap in the broader market is not correlated with a decline in offices in the neighborhood. This reduction in the number of banking offices by merging banks as well as the number of offices by other institutions in the local market following consolidation presents significant policy implications.
Publication Name: Journal of Banking & Finance
Subject: Business
ISSN: 0378-4266
Year: 1999
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The impact of consolidation and safety-net support on Canadian, US and UK banks: 1893-1992
Article Abstract:
Consolidation and enhanced safety nets generally support the traditional role of high bank capital in providing protection to risk-sensitive depositors. This is evident in the experience of Canadian, UK and US banks during 1893-1992, a period in which bank capital ratios were largely asset-risk sensitive. Bank asset-risk choices in the 1980s were comparable to those in the 1890s despite stronger safety-net guarantees, while equity volatilities increased over the period.
Publication Name: Journal of Banking & Finance
Subject: Business
ISSN: 0378-4266
Year: 1999
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