Bank market power, both in the loan and deposit market, has important implications for credit provision and for … identifies relevant channels that deserve further analysis, especially given the rising importance of bank market power for …

We model the impact of bank mergers on loan competition, banks' reserve holdings and aggregate liquidity. Banks compete … in liquidity risk and expected liquidity needs for each bank and for the banking system. Large mergers tend to increase … expected aggregate liquidity needs, and thus the liquidity provision by the central bank. Comparative statics suggest that a …

-oriented regime for merger control increases banks’ stock prices, whereas it decreases those of non-financial firms. Moreover, bank … merger targets become more profitable and larger. A major determinant of the positive bank returns, after controlling inter … alia for the general quality of institutions and individual bank characteristics, is the opaqueness that characterizes the …

We model the impact of bank mergers on loan competition, reserve holdings and aggregate liquidity. A merger changes the … distribution of bank sizes and aggregate liquidity needs. Mergers among large banks tend to increase aggregate liquidity needs and … thus the public provision of liquidity through monetary operations of the central bank. …

stock prices of non-financial firms. Bank targets become more profitable and larger, while those of non-financial firms … remain mostly unaffected. A major determinant of the positive bank returns is the degree of opaqueness that characterizes the … institutional setup for supervisory bank merger reviews. The legal design of the supervisory control of bank mergers may therefore …