IDEAS home Printed from https://ideas.repec.org/a/eee/revfin/v13y2004i1-2p7-39.html
   My bibliography  Save this article

Consolidation in US banking: Which banks engage in mergers?

Author

Listed:
  • Wheelock, David C.
  • Wilson, Paul W.

Abstract

The number of U.S. commercial banks has declined by some 40% since 1984, primarily through mergers of solvent institutions. The relaxation of legal impediments to branching has enabled this consolidation, but specific characteristics of banks that engage in mergers reflect the regulatory process and market structure, as well as the bank's own condition. This paper seeks to quantify the regulatory, market, and financial characteristics that affect the probability of a bank engaging in mergers and the volume of banks it absorbs over time. We examine separately consolidation within holding companies and mergers of independent banks.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Wheelock, David C. & Wilson, Paul W., 2004. "Consolidation in US banking: Which banks engage in mergers?," Review of Financial Economics, Elsevier, vol. 13(1-2), pages 7-39.
    • Handle: RePEc:eee:revfin:v:13:y:2004:i:1-2:p:7-39
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1058-3300(03)00058-2
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. David C. Wheelock & Paul W. Wilso, 2005. "The Contribution of On‐Site Examination Ratings to an Empirical Model of Bank Failures," Review of Accounting and Finance, Emerald Group Publishing Limited, vol. 4(4), pages 110-133, April.
    2. Wheelock, David C. & Wilson, Paul W., 2001. "New evidence on returns to scale and product mix among U.S. commercial banks," Journal of Monetary Economics, Elsevier, vol. 47(3), pages 653-674, June.
    3. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-844, September.
    4. repec:aei:rpbook:52649 is not listed on IDEAS
    5. Mullahy, John, 1986. "Specification and testing of some modified count data models," Journal of Econometrics, Elsevier, vol. 33(3), pages 341-365, December.
    6. Berger, Allen N. & Demsetz, Rebecca S. & Strahan, Philip E., 1999. "The consolidation of the financial services industry: Causes, consequences, and implications for the future," Journal of Banking & Finance, Elsevier, vol. 23(2-4), pages 135-194, February.
    7. David C. Wheelock & Paul W. Wilson, 2000. "Why do Banks Disappear? The Determinants of U.S. Bank Failures and Acquisitions," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 127-138, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ly, Kim Cuong & Liu, Hong & Opong, Kwaku, 2017. "Who acquires whom among stand-alone commercial banks and bank holding company affiliates?," International Review of Financial Analysis, Elsevier, vol. 54(C), pages 144-158.
    2. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
    3. Antonio Menezes & Ainura Uzagalieva, 2013. "The Demand of Car Rentals: a Microeconometric Approach with Count Models and Survey Data," Review of Economic Analysis, Digital Initiatives at the University of Waterloo Library, vol. 5(1), pages 25-41, June.
    4. Harald Oberhofer & Michael Pfaffermayr, 2014. "Two-Part Models for Fractional Responses Defined as Ratios of Integers," Econometrics, MDPI, vol. 2(3), pages 1-22, September.
    5. Bos, J.W.B. & van Santen, P.C. & Schilp, P., 2013. "The importance of reallocation for productivity growth: Evidence from European and US banking," Research Memorandum 056, Maastricht University, Graduate School of Business and Economics (GSBE).
    6. Ayaz, Muhammad & Jehan, Noor & Nakonieczny, Joanna & Mentel, Urszula & uz zaman, Qamar, 2022. "Health costs of environmental pollution faced by underground coal miners: Evidence from Balochistan, Pakistan," Resources Policy, Elsevier, vol. 76(C).
    7. Garmaise, Mark J. & Moskowitz, Tobias J., 2005. "Bank Mergers and Crime: The Real and Social Effects of Credit Market Competition," Working Papers 202, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    8. Leigh J. Maynard & Ellen Goddard & John Conley, 2008. "Impact of BSE on Beef Purchases in Alberta and Ontario Quick‐Serve Restaurants," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(3), pages 337-351, September.
    9. Filippo Belloc & Eleonora Laurenza & M. Alessandra Rossi, 2016. "Corporate governance effects on innovation when both agency costs and asset specificity matter," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 25(6), pages 977-999.
    10. Chiorazzo, Vincenzo & D'Apice, Vincenzo & DeYoung, Robert & Morelli, Pierluigi, 2018. "Is the traditional banking model a survivor?," Journal of Banking & Finance, Elsevier, vol. 97(C), pages 238-256.
    11. Céline Meslier-Crouzille & Donald P. Morgan & Katherine Samolyk & Amine Tarazi, 2014. "The Benefits of Intrastate and Interstate Geographic Diversification in Banking," Working Papers hal-00950504, HAL.
    12. Thomas B. King & Daniel A. Nuxoll & Timothy J. Yeager, 2006. "Are the causes of bank distress changing? can researchers keep up?," Review, Federal Reserve Bank of St. Louis, vol. 88(Jan), pages 57-80.
    13. Massimiliano Bratti & Alfonso Miranda, 2010. "Endogenous Treatment Effects for Count Data Models with Sample Selection or Endogenous Participation," DoQSS Working Papers 10-05, Quantitative Social Science - UCL Social Research Institute, University College London, revised 10 Dec 2010.
    14. Daniel Biftu Bekalo & Dufera Tejjeba Kebede, 2021. "Zero-Inflated Models for Count Data: An Application to Number of Antenatal Care Service Visits," Annals of Data Science, Springer, vol. 8(4), pages 683-708, December.
    15. Jiang, Yuan & House, Lisa A., 2017. "Comparison of the Performance of Count Data Models under Different Zero-Inflation Scenarios Using Simulation Studies," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258342, Agricultural and Applied Economics Association.
    16. Ramirez, Carlos D., 2003. "Did branch banking restrictions increase bank failures? Evidence from Virginia and West Virginia in the late 1920s," Journal of Economics and Business, Elsevier, vol. 55(4), pages 331-352.
    17. Jeong, Hanbat & Lee, Lung-fei, 2024. "Maximum likelihood estimation of a spatial autoregressive model for origin–destination flow variables," Journal of Econometrics, Elsevier, vol. 242(1).
    18. Koppenberg, Maximilian & Mishra, Ashok K. & Hirsch, Stefan, 2023. "Food Aid and Violent Conflict: A Review of Literature," IZA Discussion Papers 16574, Institute of Labor Economics (IZA).
    19. José M. R. Murteira & Mário A. G. Augusto, 2017. "Hurdle models of repayment behaviour in personal loan contracts," Empirical Economics, Springer, vol. 53(2), pages 641-667, September.
    20. Carlson, Mark & Mitchener, Kris James, 2006. "Branch Banking, Bank Competition, and Financial Stability," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 38(5), pages 1293-1328, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:revfin:v:13:y:2004:i:1-2:p:7-39. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620170 .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.