Integration Among US Banks

Abhinav Anand () and John Cotter

No 201913, Working Papers from Geary Institute, University College Dublin

Abstract: We define and measure integration among a sample of 357 US banks over 25 years from 1993 to 2017 and show that the median US bank's integration has increased significantly post-2005. During the great recession and the Eurozone crisis, integration levels among US banks display a significant rise over and above their trend. We find that bank size is the most economically and statistically significant characteristic in explaining integration levels. Size and the equity ratio show positive association with bank integration while the net interest margin and combined tier 1 and tier 2 capital ratio influence bank integration negatively. For regulators, abnormally high integration levels indicate warning signs of potential distress in the banking sector.

Keywords: Bank integration; Bank size; Banking crises; Systemic risk; Principal component regressions (search for similar items in EconPapers)
JEL-codes: C32 C33 C38 C58 G10 G21 G28 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2019-09-24
New Economics Papers: this item is included in nep-ban
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.ucd.ie/geary/static/publications/workingpapers/gearywp201913.pdf First version, 2019 (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:ucd:wpaper:201913

Access Statistics for this paper

More papers in Working Papers from Geary Institute, University College Dublin Contact information at EDIRC.
Bibliographic data for series maintained by Geary Tech ().