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Can consumers bank on mergers?


  • Kerton, Robert / R


How big do banks need to be to gain all the economies of scale? The largest Canadian banks already achieve scale economies and further increases in size can make them "too big to fail." Available evidence indicates normal monopoly risks will be passed on to Canadian firms and consumers if the largest banks merge. Improved service will make Canada's banks world competitive. Despite the banks' enthusiasm for heft to enter the US market, policy measures exist to prevent mergers that are contrary to Canada's public interest.

Suggested Citation

  • Kerton, Robert / R, 2003. "Can consumers bank on mergers?," MPRA Paper 20545, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:20545

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    References listed on IDEAS

    1. Robert Schooler, 1971. "Bias Phenomena Attendant to the Marketing of Foreign Goods in the U.S," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 2(1), pages 71-80, March.
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    4. Maria Luz Loureiro & Jill J. McCluskey, 2000. "Assessing consumer response to protected geographical identification labeling," Agribusiness, John Wiley & Sons, Ltd., vol. 16(3), pages 309-320.
    5. C M Costanzo & W C Halperin & N D Gale & G D Richardson, 1982. "An alternative method for assessing goodness-of-fit for logit models," Environment and Planning A, Pion Ltd, London, vol. 14(7), pages 963-971, July.
    6. Johny K Johansson & Ilkka A Ronkainen & Michael R Czinkota, 1994. "Negative Country-of-Origin Effects: The Case of the New Russia," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 25(1), pages 157-176, March.
    7. C M Costanzo & W C Halperin & N D Gale & G D Richardson, 1982. "An Alternative Method for Assessing Goodness-of-Fit for Logit Models," Environment and Planning A, , vol. 14(7), pages 963-971, July.
    8. Landon, Stuart & Smith, Constance, 1998. "Quality expectations, reputation, and price," MPRA Paper 9774, University Library of Munich, Germany.
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    More about this item


    bank mergers banking scale economies; monopoly prices; too big to fail; monopoly prices; Canadian banking;

    JEL classification:

    • N22 - Economic History - - Financial Markets and Institutions - - - U.S.; Canada: 1913-
    • G3 - Financial Economics - - Corporate Finance and Governance
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages


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