Financial Consolidation and Liquidity : Prudential Regulation And/Or Competition Policy?

A model of loan rate competition with liquidity provision by banks is used to study bank mergers. Both loan rate competition and liquidity needs are seen to be "localised" phenomena. This allows for tracing down the effects of particular types of bank mergers. As such, we contrast the effects of "revenue base enhancing" mergers with the effects of mergers "for market power". The optimal post merger loan rate and risk management decisions are derived. The fundamental trade-off between stability and efficiency is often present, indicating that the approval of bank mergers induces difficult policy choices

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Year of publication:	2010
Authors:	Van Cayseele, Patrick J. G.
Publisher:	[2010]: [S.l.] : SSRN
Subject:	Theorie \| Theory \| Wettbewerb \| Competition \| Bankenliquidität \| Bank liquidity \| Bank \| Kreditpolitik \| Credit policy \| Unternehmenskonzentration \| Market concentration

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Extent:	1 Online-Ressource (53 p)
Series:	National Bank of Belgium Working Paper ; No. 50
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 18, 2004 erstellt
Other identifiers:	10.2139/ssrn.1691594 [DOI]
Classification:	D43 - Oligopoly and Other Forms of Market Imperfection ; G21 - Banks; Other Depository Institutions; Mortgages ; L40 - Antitrust Policy. General ; G28 - Government Policy and Regulation
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013137064