EconPapers has moved to http://EconPapers.repec.org! Please update your bookmarks.
Bank Mergers, Competition and Liquidity
Elena Carletti (),
Additional contact information
Elena Carletti: Center for Financial Studies, Postal: Taunusanlage 6 , D-60329 Frankfurt am Main , Germany
Working Paper Series from Sveriges Riksbank (Central Bank of Sweden)
We model the impact of bank mergers on loan competition, reserve holdings and aggregate liquidity. A merger creates an internal money market that affects reserve holdings and induces financial cost advantages, but also withdraws liquidity from the interbank market. Loan market competition modifies the heterogeneity in the size of banks, thus affecting aggregate liquidity. Mergers among large banks tend to increase aggregate liquidity needs and thus the liquidity provision in monetary operations by the central bank.
Keywords: Credit market competition; bank reserves; internal money market; banking system liquidity (search for similar items in EconPapers)
JEL-codes: D43 G21 G28 L13 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-cwa, nep-fin and nep-ind
References: View references in EconPapers View complete reference list from CitEc Citations View citations in EconPapers (13) Track citations by RSS feed
Downloads: (external link) http://www.riksbank.com/upload/WorkingPapers/WP_182.pdf (application/pdf)
Related works: Journal Article: Bank Mergers, Competition, and Liquidity (2007) Working Paper: Bank Mergers, Competition and Liquidity (2004) Journal Article: Bank mergers, competition, and liquidity (2003) Working Paper: Bank mergers, competition and liquidity (2003) This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:hhs:rbnkwp:0182
Access Statistics for this paper
More papers in Working Paper Series from Sveriges Riksbank (Central Bank of Sweden)
Address: Sveriges Riksbank, SE-103 37 Stockholm, Sweden Contact information at EDIRC. Series data maintained by Lena Löfgren ().