Cross-Market Effects of Consolidation: Evidence from Banking
研究了美国银行合并对非合并银行在其他市场运营的跨市场溢出效应，发现受合并影响更大的银行在其他市场存款增长2.1%。
Abstract The U.S. banking sector had nearly 70% fewer banks in 2022 relative to 1989, primarily because of mergers. We develop a methodology to estimate cross-market spillover effects of bank mergers and test whether the operations of incumbents facing consolidating competitors in one market are affected in other markets. We find that nonmerging banks within a market that are one standard deviation more exposed to mergers in other markets increase deposits by 2.1% relative to their less exposed competitors. Our methodology may be applied elsewhere to assess the aggregate impacts of industry consolidation and illustrates challenges with product-based or geographic market definitions.