Carletti, Elena; Hartmann, Philipp; Spagnolo, Giancarlo - 2003
in liquidity risk and expected liquidity needs for each bank and for the banking system. Large mergers tend to increase …We model the impact of bank mergers on loan competition, banks' reserve holdings and aggregate liquidity. Banks compete … in a differentiated loan market, hold reserves against liquidity shocks, and refinance in the interbank market. A merger …