Theoretical models of lending and industrial organization theory predict that firm access to credit depends critically on bank market structure. However, empirical studies offer mixed results. Some studies find that higher concentration is associated with higher credit availability consistent...

How do banks react to increased interbank competition? Recent banking theory offers conflicting predictions about the impact of competition on bank orientation - i.e., the choice of relationship based versus transactional banking - and bank industry specialization. We empirically investigate the...

We examine the informational effects of M&As by investigating whether bank mergers improve banks’ abilities to screen their borrowers. By exploiting a dataset in which we observe a measure of a borrower’s default risk which the lenders observe only imperfectly, we find evidence of these...

Using a sample for 1972-2002 with over 8,000 bank entries into local markets, we find a market share advantage for earlier entrants. In particular, the earlier a bank enters, the larger is its market share relative to other banks, controlling for firm, market and time effects, with a market...

We assess the competitive impact that single-market banks and thrift institutions have on multi-market banks (and vice-versa) in 1,884 non-MSA markets. We estimate a model of equilibrium market structure which endogenizes entry for three types: multi-market banks, single-market banks, and thrift...

We document the build-up of regulatory and market equity capital in large U.S. bank holding companies between 1986 and 2000. During this time, large banking firms raised their capital ratios to the highest levels in more than 50 years. Since 1995, essentially none of the 100 largest U.S. banking...

We examine the informational effects of M&As by investigating whether bank mergers improve banks’ abilities to screen their borrowers. By exploiting a dataset in which we observe a measure of a borrower’s default risk which the lenders observe only imperfectly, we find evidence of these...