The profitability of small, single-market banks in an era of multimarket banking

Timothy Hannan and Robin A. Prager

No 2006-41, Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (U.S.)

Abstract: This paper examines the relationship between multimarket bank presence and the profitability (and therefore viability) of small, single-market banks. We find that increased presence of multimarket banks is associated with a significant reduction in the profitability of small, single-market banks operating in rural banking markets, but not of those operating in urban markets. We explore this relationship by breaking single-market bank profits down into several components in order to shed light on the mechanisms through which multimarket bank presence might influence the profitability of single-market banks.

Keywords: Banks and banking; Bank profits (search for similar items in EconPapers)
Date: 2006
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Related works:
Journal Article: The profitability of small single-market banks in an era of multi-market banking (2009)
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