Cover image for The bank merger wave : the economic causes and social consequences of financial consolidation
Title:
The bank merger wave : the economic causes and social consequences of financial consolidation
Author:
Dymski, Gary.
Personal Author:
Publication Information:
Armonk, N.Y. : M.E. Sharpe, [1999]

©1999
Physical Description:
xxi, 320 pages : illustrations ; 23 cm.
Language:
English
ISBN:
9780765603821

9780765603838
Format :
Book

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Call Number
Material Type
Home Location
Status
Central Library HG1722 .D96 1999 Adult Non-Fiction Central Closed Stacks
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Summary

Summary

This far-reaching study shows that operating efficiencies are not what are driving today's unrelenting bank merger mania. It suggests that bank mergers and consolidation may have effects that are contrary to consumer and non-financial business interests, such as lower rates of interest, increasing fees, and tighter credit constraints. Dymski recommends several new policies to apply to the evaluation of prospective mergers.


Reviews 1

Choice Review

Dymski (Univ. of California, Riverside) has written a controversial monograph on the "social efficiency" implications of US commercial bank mergers. He presents a reasoned analysis, supported by empirical evidence, that bank mergers have adversely affected low-income and minority groups. Dymski scores some telling points, noting, for example, that while small community banks face bankruptcy dangers from inadequate loan diversification, large, global banks (most often created by merger) have suffered significantly from poor judgement in lending to borrowers in emerging markets, transition economies, and most recently, Asia. However, he pays inadequate attention to the domestic competition commercial banks face from nonbank US intermediaries as well as from foreign banks in today's active global financial marketplace. In addition, the technology of computers and communication links presents a new challenge from nonbank purveyors of electronic banking. Dymski also fails to stress that the atomized US banking industry is itself an anomaly; banking throughout the world, with the exception of the US, is concentrated in the hands of a few, large institutions. In all, however, Dymski's research should be taken seriously. It voices an unpopular and rarely heard view in academia that all is not rosy with the bank merger movement. Academic, research, and professional collections. J. Prager; New York University


Table of Contents

1 Introduction
2 Overview
3 Bank Mergers and Regulatory Policy from the 1960s to the 1990s
4 Explaining the Bank Merger Wave
5 The Ambiguous Basics for Regulating Bank Mergers
6 Evidence on the Effects of Bank Mergers and Consolidation
7 Banking and Lending Structures: Do Regional Differences Matter?
8 Differential Access to Credit, East and West
9 Regional Patterns in Credit-Market Disadvantage and Financial Structures
10 Bank Concentration, Strategic Interaction, and Access to Credit
11 Conclusions
12 Ten Recommendations for Public Policy

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