Advanced Search
MyIDEAS: Login to save this article or follow this journal

Have borrower concentration limits encouraged bank consolidation?

Contents:

Author Info

  • Joe Peek
  • Eric S. Rosengren

Abstract

Bank consolidation has been going on for more than a decade, in part the result of legislative and regulatory changes and in part a reflection of the large number of banks that became financially troubled in the late 1980s and early 1990s. However, the rapid consolidation of institutions still continues, even though the health of most banks has improved and many states long ago liberalized regulations on intrastate branching and interstate merging. This suggests that other factors may also be playing an important role. The large number of mergers involving target banks with assets under $100 million and the preponderance of mergers where both target and acquirer are small banks suggest that some of the merger activity may be an attempt to overcome limitations imposed by small size, such as borrower concentration limits. The fastest-growing segment of the lending market is loans over $1 million, and borrower concentration limits prevent the smallest banks from servicing such loans. This article examines motivations for bank mergers and their regional patterns, and then considers the outlook for further bank consolidation.

Download Info

If 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.
File URL: http://www.bostonfed.org/economic/neer/neer1997/neer197c.htm
Download Restriction: no

File URL: http://www.bostonfed.org/economic/neer/neer1997/neer197c.pdf
Download Restriction: no

Bibliographic Info

Article provided by Federal Reserve Bank of Boston in its journal New England Economic Review.

Volume (Year): (1997)
Issue (Month): Jan ()
Pages: 37-47

as in new window
Handle: RePEc:fip:fedbne:y:1997:i:jan:p:37-47

Contact details of provider:
Postal: 600 Atlantic Avenue, Boston, Massachusetts 02210
Phone: 617-973-3397
Fax: 617-973-4221
Email:
Web page: http://www.bos.frb.org/
More information through EDIRC

Order Information:
Email:

Related research

Keywords: Bank mergers;

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:fip:fedbne:y:1997:i:jan:p:37-47. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Catherine Spozio).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.