Monopoly-creating bank consolidation?
the merger of Fleet and BankBoston
Our rough guess is there are 6,250 words in this book.
At a pace averaging 250 words per minute, this book will take 0 hours and 25 minutes to read. With a half hour per day, this will take 1 days to read.
How long will it take you?
This book will take an estimated to read at a reading speed averaging words per minute. With 30 minutes per day, this will take to read.
Enter your reading speedYou can take one of our WPM reading speed tests to find your reading speed.
Create a free account to track your reading progress, build your reading list, and set reading goals.
Author
Contributions
- Pornrojnangkool, Thanavut. - Contributor
- National Bureau of Economic Research. - Contributor
Publication
2005 - National Bureau of Economic Research, Cambridge, Mass, Massachusetts
Language
English
Word Count
6,250 words, Guess
Page Count
25 pages
Identifiers
- OCLC Control Number60572102
- Open LibraryOL17626642M
Classifications
- LCCHB1
Description
"The merger of Fleet and BankBoston in September 1999 resulted in a regional New England lending market in which only one large, universal bank remained. We explore the extent to which that merger resulted in monopoly rents for the combined entity in some niches within the regional loan market. For small- and medium-sized middle-market borrowers, prior to the merger, Fleet and BankBoston charged unusually low loan interest rates, reflecting their ability to realize economies of scope and scale. After the merger, those cost savings were no longer passed on to medium-sized middle-market borrowers, which resulted in an increase in the average interest rate credit spreads to those borrowers of roughly one percent. Small-sized middle-market borrowers (which continued to enjoy the advantage of loan market competition from remaining small banks) maintained their low spreads. Our results suggest that it may be desirable for regulators to consider the concentration in lending markets in addition to deposit markets when evaluating mergers and structuring appropriate divestiture requirements"--National Bureau of Economic Research web site.
Subjects
Topics
Series Statement
- NBER working paper series -- no. 11351.
- Working paper series (National Bureau of Economic Research) -- working paper no. 11351.
Links
Other Editions
- Monopoly-creating bank consolidation?: the merger of Fleet and BankBoston
Reader Reviews
No reviews yet for this book.
Be the first to share your thoughts!