Do mergers encourage the formation of new banks, Corporate Finance

Do mergers encourage the formation of new banks?

A: Yes. The rise in the number of new banks in the second half of the 1990s coincides with a surge in merger activity in the same period. A study conducted by the Federal Reserve Bank of Kansas City suggests that new bank formation is positively related to prior merger activity.  The study further points out that a higher rate of new bank formation is more strongly related to mergers when ownership shifts away from small organizations to large ones or toward distant organizations.


Posted Date: 6/13/2013 6:53:31 AM | Location : United States

Related Discussions:- Do mergers encourage the formation of new banks, Assignment Help, Ask Question on Do mergers encourage the formation of new banks, Get Answer, Expert's Help, Do mergers encourage the formation of new banks Discussions

Write discussion on Do mergers encourage the formation of new banks
Your posts are moderated
Related Questions
how do you calculate it

Question: (a) What are the differences and similarities between futures and forwards? (a) Distinguish between exchange traded instruments and over the counter instruments

The cost of capital for a firm can differ from the cost of capital for each of its businesses. When a firm has multiple businesses, it is important to use the cost of capital appro

The total sales are not necessarily equal to total demand, since some demand may have been lost. For the case that lost demand is not recorded at all, Fisher et al. (2000) propose

Determinants of growth - Profit Margin Dividend Policy   Financial Policy Total asset Turnover

explain the term financial markets

Question 1: ‘An internal rating system may incorporate supplementary customer information which is usually out of the reach of an external credit assessment institution.' Discu

short term financial planning case study

Course assessment: Company directors often believe that the stock market fails "correctly" to value the firms they manage, while investors are often alarmed by the volatility i

Table gives the average MAPE, again for all SKUs with positive preview demand together (overall) and also per preview demand class. We remark that despite of the large differences