IDEAS home Printed from
MyIDEAS: Login to save this paper or follow this series

The UBS-SBC Merger and Competition in the Swiss Retail Banking Sector

Registered author(s):

    We address two questions about the impact of the UBS-SBC merger: (i) How will the concentration in the Swiss retail banking market change, and (ii) what are the expected consequences for the consumers. The answer to the first question is based on a comparison of Herfindahl and C3-indices in 1997 as they actually have been to as they could have been if the banks already had been merged. For both types of indices, and for the two product groups considered (loans and mortgages, savings deposits) the impact of the merger is huge. To answer the second question, we have examined how concentration interfered with savings deposits and mortgages interest rates in the previous decade, between the cantons and over time. The results obtained for savings deposits indicate that the structure performance hypothesis dominates for large cantons, while the efficiency hypothesis and the contestable market hypotheses cannot be rejected for small cantons. For mortgages, the contestable market hypotheses clearly dominates for large cantons, while for small cantons evidence is split between the efficiency hypothesis and the contestable market hypothesis.

    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:
    File Function: Full text
    Download Restriction: None

    Paper provided by Swiss National Bank, Study Center Gerzensee in its series Working Papers with number 00.02.

    in new window

    Length: 26 pages
    Date of creation: Dec 1999
    Date of revision:
    Handle: RePEc:szg:worpap:0002
    Contact details of provider: Postal: Studienzentrum Gerzensee, Postfach 21, 3115 Gerzensee
    Phone: ++41 (0)31 780 31 31
    Fax: ++41 (0)31 780 31 00
    Web page:

    Order Information: Postal: Studienzentrum Gerzensee, Postfach 21, 3115 Gerzensee

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

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

    When requesting a correction, please mention this item's handle: RePEc:szg:worpap:0002. 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: (library)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.