IDEAS home Printed from https://ideas.repec.org/a/fip/fednep/y1998ijunp15-34nv.4no.2.html
   My bibliography  Save this article

The expanding geographic reach of retail banking markets

Author

Listed:
  • Lawrence J. Radecki

Abstract

In the view of most policymakers and economists, competition in retail banking takes place in local markets the size of a single county or metropolitan area. This article presents evidence that the locus of banking competition has in recent years shifted to larger geographic arenas. The author's review of 1997 survey data reveals that many banks set uniform rates for both deposits and retail loans across an entire state or broad regions of a large state. Regression analysis of the relationship between retail deposit rates and measures of market concentration further supports this expansion in market size: the clear relationship that earlier studies detected between individual banks' deposit rates and measures of concentration at the local level is no longer evident, while a relationship does emerge at the state level.

Suggested Citation

  • Lawrence J. Radecki, 1998. "The expanding geographic reach of retail banking markets," Economic Policy Review, Federal Reserve Bank of New York, vol. 4(Jun), pages 15-34.
    • Handle: RePEc:fip:fednep:y:1998:i:jun:p:15-34:n:v.4no.2
    as

    Download full text from publisher

    File URL: https://www.newyorkfed.org/medialibrary/media/research/epr/98v04n2/9806rade.pdf
    Download Restriction: no
    File URL: https://www.newyorkfed.org/medialibrary/media/research/epr/98v04n2/9806rade.html
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dean F. Amel, 1997. "Antitrust policy in banking: current status and future prospects," Proceedings 544, Federal Reserve Bank of Chicago.
    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. Astrid A. Dick, 2003. "Market structure and quality: an application to the banking industry," Finance and Economics Discussion Series 2003-14, Board of Governors of the Federal Reserve System (U.S.).
    2. Amel, Dean F. & Hannan, Timothy H., 1999. "Establishing banking market definitions through estimation of residual deposit supply equations," Journal of Banking & Finance, Elsevier, vol. 23(11), pages 1667-1690, November.
    3. Nicola Cetorelli, 1999. "Competitive analysis in banking: appraisal of the methodologies," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 23(Q I), pages 2-15.
    4. Astrid A. Dick, 2007. "Market Size, Service Quality, and Competition in Banking," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 39(1), pages 49-81, February.

    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:fip:fednep:y:1998:i:jun:p:15-34:n:v.4no.2. 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: Gabriella Bucciarelli (email available below). General contact details of provider: https://edirc.repec.org/data/frbnyus.html .

    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.