Bank Mergers and Deposit Rate Rigidity

Autor(en): Dinger, Valeriya 
Stichwörter: Bank market structure; Bank mergers; Business & Economics; Business, Finance; COMPETITION; Hazard rate; INDUSTRY; Interest rate dynamics; LOAN; MARKET; PRICES; TRANSMISSION
Erscheinungsdatum: 2015
Herausgeber: SPRINGER
Journal: JOURNAL OF FINANCIAL SERVICES RESEARCH
Volumen: 47
Ausgabe: 1
Startseite: 27
Seitenende: 56
Zusammenfassung: 
In this paper, I empirically explore the relation between bank mergers and the rigidity of banks' deposit rates. I find that merging banks are more likely to change their deposit rates in the first months following a merger. However, in the long term, merging banks change their deposit rates less frequently than non-merging banks. This finding is particularly true after mergers with large target banks and after mergers with a substantial geographical expansion of the bank's operations. The documented post-merger deposit rate rigidity has important implications for the evaluation of merger effects in the context of anti-trust and monetary policies.
ISSN: 09208550
DOI: 10.1007/s10693-013-0182-2

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