Bank mergers and the dynamics of deposit interest rates

Journal of Financial Services Research

Volumn 36, Issue 2, 2009, Pages 111-133

  Craig, Ben R ^a,c   Dinger, Valeriya ^b  

^a FEDERAL RESERVE BANK OF CLEVELAND   (United States)

^b UNIVERSITY OF BONN   (Germany)

^c DEUTSCHE BUNDESBANK   (Germany)

Author keywords

Bank mergers; Deposit rate dynamics; Deposit rate rigidity

Indexed keywords

EID: 70350381134     PISSN: 09208550     EISSN: None     Source Type: Journal    
DOI: 10.1007/s10693-008-0042-7     Document Type: Article

References (33)

1. Barros PP (1999) Multimarket competition in banking, with an example from the Portuguese market. Int J Ind Organ 17:335-352. doi:10.1016/S0167-7187(97)00035-0.
2. Berger AN, Hannan TH (1989) The price-concentration relationship in banking. Rev Econ Stat 71:291-299. doi:10.2307/1926975.
3. Berger AN, Hannan TH (1991) The rigidity of prices: evidence from the banking industry. Am Econ Rev 81:938-945.
4. Berger AN, Saunders A, Scalise JM, Udell GF (1998) The effects of bank mergers and acquisitions on small business lending. J Financ Econ 50:187-229. doi:10.1016/S0304-405X(98)00036-1.
5. Billet MT, Garfinkel JA, O'Neal ES (1998) The cost of market versus regulatory discipline in banking. J Financ Econ 48:333-358. doi:10.1016/S0304-405X(98)00014-2.
6. Caballero RJ, Engel E (2007) Price stickiness in ss models: new interpretations of old results. MIT, Cambridge.
7. Calomiris CW, Karceski J (2000) Is the bank merger wave of the 1990's efficient. In: Kaplan SN (ed) Mergers and productivity. The University of Chicago Press, Chicago, pp 93-161.
8. Caplin A, Spulber D (1987) Menu costs and the neutrality of money. Quarterly Journal of Economics 102(4):703-726.
9. Connor R, Feldman R, Dowd B, Radcliff T (1997) Which types of hopsital mergers save consumers money. Health Aff 16:62-72. doi:10.1377/hlthaff.16.6.62.
10. Corvoisier S, Gropp R (2002) Bank concentration and retail interest rates. J Bank Finance 26:2155-2189. doi:10.1016/S0378-4266(02)00204-2.
11. Craig B, Santos J (1997) Banking consolidation effects on small business lending. Federal Reserve Bank of Cleveland, Cleveland, Working Paper.
12. Edelstein P, Morgan DP (2006) Local or state? Evidence on bank market size using branch prices, Economic. Policy Rev 12:15-25.
13. Edwards C (1955) Conglomerate bigness as a source of power, NBER Conference report "Business concentration and price policy". Princeton University Press, Princeton.
14. Focarelli D, Panetta F (2003) Are mergers beneficial to consumers? Evidence from the Italian market for bank deposits. Am Econ Rev 93:1152-1172. doi:10.1257/000282803769206241.
15. Hannan TH, Prager RA (1998) Do substantial horizontal mergers generate significant price effects? Evidence from the banking industry. J Ind Econ 46:433-452. doi:10.1111/1467-6451.00082.
16. Hannan TH, Prager RA (2004) The competitive implications of multimarket bank branching. J Bank Finance 28:1889-1914. doi:10.1016/j.jbankfin.2003.06.006.
17. Hannan TH, Prager RA (2006) Multimarket bank pricing: an empirical investigation of deposit interest rates. J Econ Bus 58(3):256-272. doi:10.1016/j.jeconbus.2005.07.004.
18. Heckman J (1976) The common structure of statistical models of truncation, sample selection and limited dependent variables and a simple estimator for such models. Ann Econ Soc Meas 5:475-492.
19. Heckman J (1979) Sample selection bias as a specification error. Econometrica 47:153-161. doi:10.2307/1912352.
20. Huber P (1967) The behavior of maximum likelihood estimates under nonstandard conditions. Proceedings of the Fifth Berkeley Symposium on Mathematical Statistics and Probability 1:221-233.
21. Gropp R, Kok Sørensen C, Lichtenberger J-D (2007) The dynamics of bank spreads and financial structure. ECB, Frankfurt, ECB Working Paper Series 714.
22. Kahn C, Pennacchi G, Sopranzetti B (2005) Bank consolidation and consumer loan rates. Journal of Business 78:99-133.
23. Kim EH, Singal V (1993) Mergers and market power: evidence from the airline industry. Am Econ Rev 83(3):549-569.
24. Mester L (1987) Multiple market contact between savings and loans. J Money Credit Bank 19:538-549.
25. Neumark D, Sharpe SA (1992) Market structure and the nature of price rigidities: evidence from the market for consumer deposits. Q J Econ 107:657-680.
26. Örs E, Rice T (2007) Definitional and statistical difference in imputed and offered deposit rates, mimeo.
27. Park K, Pennacchi G (2008) Harming depositors and helping borrowers: the disparate impact of bank consolidation. Federal Reserve Bank of Cleveland, Cleveland.
28. Radecki L (1998) The expanding geographic reach of retail banking markets. Economic Policy Review (Federal Reserve Bank of New York) 4.
29. Rosen R (2003) Banking market conditions and deposit interest rates. FRB of Chicago, Chicago, FRB of Chicago Working Paper 2003-19.
30. Sapienza P (2002) The effects of banking mergers on loan contracts. Journal of Finance 57:329-368.
31. Sheshinski E, Weiss Y (1977) Inflation and costs of price adjustment. Rev Econ Stud 44:287-303.
32. Stein JC (2002) Information production and capital allocation: decentralized vs. hierarchical firms. J Finance 57:1891-1921.
33. Wooldridge J (2002) Econometric analysis of cross-section and panel data. MIT, Cambridge.