In this paper, I empirically explore the relation between bank mergers and the rigidity of banks’ deposit rates. I find that merging banks are more likely to change their deposit rates in the first months following a merger. However, in the long term, merging banks change their deposit rates...

This paper studies banks' competitive behavior on the deposit side of the Italian retail banking industry. We use a structural model to estimate demand for deposit services and test several supply models. We find that both the competitive, differentiated product Bertrand and the perfectly...

This paper analyses the dynamics of a banking duopoly game with heterogeneous and homogeneous players (as regards the type of expectations' formation), to investigate the effects of the capital requirements introduced by international accords (Basel-I in 1988 and more recently Basel-II and...

This paper studies, over the 1993-2010 period, the evolution of the market power (Lerner index) of the banks in Thailand as well as the cost efficiency scores on two main banking markets ? lending and investment activities ? and on the whole banking market. Its objective is to measure the impact...

Banks play a central role in financing and monitoring firms in transition economies. This study examines how bank competition affects the efficiency of credit allocation; monitoring of firms; and the firms' restructuring effort. In our model, banks compete to finance an investment project with...

We model the impact of bank mergers on loan competition, reserve holdings and aggregate liquidity. A merger creates an internal money market that affects reserve holdings and induces financial cost advantages, but also withdraws liquidity from the interbank market. We assess changes in liquidity...

We investigate how bank competition affects the efficiency of credit allocation, using a model of spatial competition. Our analysis shows that bad loans are more likely the larger the number of banks competing for customers. We study further how many banks will be active if market entry is not...

The merger of Fleet and BankBoston in September 1999 resulted in a regional New England lending market in which only one large, universal bank remained. We explore the extent to which that merger resulted in monopoly rents for the combined entity in some niches within the regional loan market....

The Riegle-Neal Act in the US and the Economic and Monetary Union in Europe are recent initiatives to stimulate financial integration. These initiatives allow new entrants to ‘poach’ the incumbents' clients by offering them attractive loan offers. We show that these deregulations may be...

Las pérdidas de Bankia-BFA entre 2010 y 2012 ascendieron a más de 36.000 millones de euros. El 3.5% del PIB español, el doble de los fondos propios de las 7 cajas que constituyeron Bankia o el 13,5% de sus activos totales. A través un benchmarking con las dos entidades más cercanas en...