Branch Banking, Bank Competition, and Financial Stability
利用1920-30年代美国国民银行数据，发现分支银行通过加剧竞争促进银行体系整合，其对稳定的作用大于地理分散化效应。
It is often argued that branching stabilizes banking systems by facilitating diversification of bank portfolios; however, previous empirical research on the Great Depression offers mixed support for this view. Using data on national banks from the 1920s and 1930s, we show that branch banking raises the level of competition and increases exit from the banking system. This consolidation strengthens the system as a whole without necessarily strengthening the branch banks themselves. Our empirical results suggest that the effects that branching had on competition were quantitatively more important than geographical diversification for bank stability in the 1920s and 1930s.