Can consumers bank on mergers?

Kerton, Robert / R (2003): Can consumers bank on mergers? Published in: Policy Options / Options Politiques No. March (March 2003): pp. 16-18.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: bank mergers banking scale economies; monopoly prices; too big to fail; monopoly prices; Canadian banking
• Subjects: N - Economic History > N2 - Financial Markets and Institutions > N22 - U.S. ; Canada: 1913-; G - Financial Economics > G3 - Corporate Finance and Governance; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages

References

National Quality Institute, 1997. Quality in Canadian Service Industries, Toronto.