A model of loan rate competition with liquidity provision by banks is used to study bank mergers. Both loan rate … of bank mergers. As such, we contrast the effects of "revenue base enhancing" mergers with the effects of mergers "for … stability and efficiency is often present, indicating that the approval of bank mergers induces difficult policy choices …

Using a new monthly dataset on bank-level lending rates, we study the transmission of conventional and unconventional … monetary policy in the euro area via shifts in the supply of credit. We find that a bank lending channel is operational for … is attenuated by their negative effect on future bank's capital position via the net interest income (reverse bank …