Can consumers bank on mergers?

Robert Kerton

MPRA Paper from University Library of Munich, Germany

Abstract: How big do banks need to be to gain all the economies of scale? The largest Canadian banks already achieve scale economies and further increases in size can make them "too big to fail." Available evidence indicates normal monopoly risks will be passed on to Canadian firms and consumers if the largest banks merge. Improved service will make Canada's banks world competitive. Despite the banks' enthusiasm for heft to enter the US market, policy measures exist to prevent mergers that are contrary to Canada's public interest.

Keywords: bank mergers banking scale economies; monopoly prices; too big to fail; monopoly prices; Canadian banking (search for similar items in EconPapers)
JEL-codes: G21 G3 N22 (search for similar items in EconPapers)
Date: 2003
References: Add references at CitEc
Citations:

Published in Policy Options / Options Politiques March (2003): pp. 16-18

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/20545/1/MPRA_paper_20545.pdf original version (application/pdf)

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: https://EconPapers.repec.org/RePEc:pra:mprapa:20545

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().