Economic Integration and Banking Mergers Strategies
In this work we develop a spatial model to explain local megers and acquisitions (M&As) in European retail banking systems as strategic reactions to changes in regulation and economic integration. We show that local banking concentration increases market power and contributes to build new barriers to entry. Local M&As yield positive social results in the first economic integration stages, but could damage welfare in more advenced stages in cases where they serve to safeguard price agreements in front of foreign competition. Our results seem to conform to experiences of most European banking markets during the last two decades.
|Date of creation:||Jun 2001|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.aeefi.com|
More information through EDIRC
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.:
- Gual, Jordi, 1999. "Deregulation, Integration and Market Structure in European Banking," CEPR Discussion Papers 2288, C.E.P.R. Discussion Papers.
- Davis, E. Philip & De Bandt, Olivier, 1999. "A cross-country comparison of market structures in European banking," Working Paper Series 0007, European Central Bank.
- Joseph P. Hughes & Loretta J. Mester, 1998.
"Bank Capitalization And Cost: Evidence Of Scale Economies In Risk Management And Signaling,"
The Review of Economics and Statistics,
MIT Press, vol. 80(2), pages 314-325, May.
- Joseph P. Hughes & Loretta J. Mester, 1997. "Bank capitalization and cost: evidence of scale economies in risk management and signaling," Working Papers 96-2, Federal Reserve Bank of Philadelphia.
- Joseph P. Hughes, 1997. "Bank Capitalization and Cost: Evidence of Scale Economies in Risk Management and Signaling," Departmental Working Papers 199601, Rutgers University, Department of Economics.
- Molyneux, Phil & Lloyd-Williams, D. M. & Thornton, John, 1994. "Competitive conditions in european banking," Journal of Banking & Finance, Elsevier, vol. 18(3), pages 445-459, May.
- Gual, Jordi, 1999. "Deregulation, integration and market structure in European banking," IESE Research Papers D/397, IESE Business School.
- Chiappori, P.A. & Perez-Castrillo, D. & Verdier, T., 1992.
"Spatial Competition in the Banking System: Localization, Cross Subsidies and the Regulation of Deposit Rates,"
DELTA Working Papers
92-15, DELTA (Ecole normale supérieure).
- Chiappori, Pierre-Andre & Perez-Castrillo, David & Verdier, Thierry, 1995. "Spatial competition in the banking system: Localization, cross subsidies and the regulation of deposit rates," European Economic Review, Elsevier, vol. 39(5), pages 889-918, May.
- Jalal D. Akhavein & Allen N. Berger & David B. Humphrey, 1997.
"The effects of megamergers on efficiency and prices: evidence from a bank profit function,"
Finance and Economics Discussion Series
1997-9, Board of Governors of the Federal Reserve System (U.S.).
- Jalal D. Akhavein & Allen N. Berger & David B. Humphrey, 1996. "The Effects of Megamergers on Efficiency and Prices: Evidence from a Bank Profit Function," Center for Financial Institutions Working Papers 96-03, Wharton School Center for Financial Institutions, University of Pennsylvania.
- Gene M. Grossman & Carl Shapiro, 1984. "Informative Advertising with Differentiated Products," Review of Economic Studies, Oxford University Press, vol. 51(1), pages 63-81.
- Dietsch, Michel & Lozano-Vivas, Ana, 2000. "How the environment determines banking efficiency: A comparison between French and Spanish industries," Journal of Banking & Finance, Elsevier, vol. 24(6), pages 985-1004, June.
- Lloyd-Williams, D. M. & Molyneux, Phil & Thornton, John, 1994. "Market structure and performance in Spanish banking," Journal of Banking & Finance, Elsevier, vol. 18(3), pages 433-443, May.
- Gual, Jordi, 1999. "Deregulation, Integration, and Market Structure in European Banking," Journal of the Japanese and International Economies, Elsevier, vol. 13(4), pages 372-396, December.
- J.A. Bikker & J.M. Groeneveld, 1998. "Competition and Concentration in the EU Banking Industry," Research Series Supervision (discontinued) 8, Netherlands Central Bank, Directorate Supervision.
- Vives, Xavier, 1990. "Banking Competition and European Integration," CEPR Discussion Papers 373, C.E.P.R. Discussion Papers.
- Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
- Damien NEVEN & Thomas VON UNGERN-STERNBERG, 1998. "The Competitive Impact of the UBS-SBC Merger," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 9805, Université de Lausanne, Faculté des HEC, DEEP.
When requesting a correction, please mention this item's handle: RePEc:aee:wpaper:0107. 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: (Jose L. Torres)
If references are entirely missing, you can add them using this form.