IBBEA Implementation and the Relative Profitablility of Small Banks
AbstractThe enactment of Riegle-Neal IBBEA in 1994 encouraged bank mergers and acquisitions. Empirical evidence indicates that large banks beneÞted from IBBEA enactment. However, there is little, if any, evidence of the impact of the act on small banksÕ proÞtability relative to large banks. This study examines the impact of IBBEA on the performance of small banks in the period preceding and following IBBEA implementation. Evidence is presented that indicates the return on assets of small banks was signiÞ cantly less than that of larger banks in the post-IBBEA period. This is contrary to the results of the pre-IBBEA period when small banksÕ proÞtability was competitive with and in some cases even better than large banksÕ proÞtability. It is concluded that the enactment of IBBEA has placed small banks at a competitive disadvantage which could eventually lead to their demise.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Emerald Group Publishing in its journal American Journal of Business.
Volume (Year): 20 (2005)
Issue (Month): 2 ()
Contact details of provider:
Web page: http://www.emeraldinsight.com
Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
Find related papers by JEL classification:
- R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
- Z0 - Other Special Topics - - General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Nippani, Srinivas & Green, Kenneth Jr., 2002. "The banking industry after the Riegle-Neal Act: re-structure and overall performance," The Quarterly Review of Economics and Finance, Elsevier, vol. 42(5), pages 901-909.
- Yaron Brook & Robert Hendershott & Darrell Lee, 1998. "The Gains from Takeover Deregulation: Evidence from the End of Interstate Banking Restrictions," Journal of Finance, American Finance Association, vol. 53(6), pages 2185-2204, December.
- repec:ajb:ancoec:v:12:y:1997:i:2:p:13-20 is not listed on IDEAS
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Harris).
If references are entirely missing, you can add them using this form.