Journal article
Concentration and innovation: striking a balance in deregulation; will deregulation cause too much concentration in banking markets?
Economic review (Atlanta, Ga.), Vol.72(1), pp.11-20
02/01/1987
Abstract
There is some concern that extensive deregulation of the US commercial banking industry would lead to increased concentration of financial resources and excess market power. However, a recent study suggests that such concerns should be offset by benefits resulting from increased scale. An analysis of a sample of bank holding companies over the period 1972-1982 shows that a bank's rate of technical innovation is not faster for larger banks than for smaller banks. The positive effects of technical change may offset the negative effects of increased concentration. Smaller banks will survive over a period of time because their cost structures will converge with those of larger banks if they continue to advance technically. Any legislation should consider the trade-off between concentration and technical advance.
Details
- Title: Subtitle
- Concentration and innovation: striking a balance in deregulation; will deregulation cause too much concentration in banking markets?
- Creators
- William HunterStephen Timme
- Resource Type
- Journal article
- Publication Details
- Economic review (Atlanta, Ga.), Vol.72(1), pp.11-20
- ISSN
- 0732-1813
- Language
- English
- Date published
- 02/01/1987
- Academic Unit
- Finance
- Record Identifier
- 9984963228302771
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