IBBEA Implementation and the Relative Profitablility of Small Banks

Srinivas Nippanni and Kenneth M. Washer

American Journal of Business, 2005, vol. 20, issue 2, pages 21-24

Abstract: The enactment of Riegle-Neal IBBEA in 1994 encouraged bank mergers and acquisitions. Empirical evidence indicates that large banks beneÞted from IBBEA enactment. However, there is little, if any, evidence of the impact of the act on small banksÕ proÞtability relative to large banks. This study examines the impact of IBBEA on the performance of small banks in the period preceding and following IBBEA implementation. Evidence is presented that indicates the return on assets of small banks was signiÞ cantly less than that of larger banks in the post-IBBEA period. This is contrary to the results of the pre-IBBEA period when small banksÕ proÞtability was competitive with and in some cases even better than large banksÕ proÞtability. It is concluded that the enactment of IBBEA has placed small banks at a competitive disadvantage which could eventually lead to their demise.

Keywords: Asset return; Bank mergers and acquisitions; Riegle-Neal IBBEA (search for similar items in EconPapers)
JEL-codes: R00 Z0 (search for similar items in EconPapers)
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.emeraldinsight.com/journals.htm?issn=19 ... 917850&show=abstract (text/html)
Articles are not free to download

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:eme:ajbpps:v:20:y:2005:i:2:p:21-24

Ordering information: This journal article can be ordered from
Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
http://www.emeraldinsight.com/abs.htm

Access Statistics for this article

American Journal of Business is edited by Dr. Ashok K Gupta

More articles in American Journal of Business from Emerald Group Publishing
Series data maintained by Chris Harris ().