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Review of Industrial Organization

, Volume 10, Issue 1, pp 53–67 | Cite as

The effect of merger and acquisition activity on the safety and soundness of a banking system

  • Jacob Paroush
Article

Abstract

The purpose of this paper is twofold. First, it argues that merger and acquisition activity reduces the total risk in the banking system. Second, it suggests that the recent high level of merger and acquisition activity as well as the high rate of banks failure is an adjustment process of a banking system to a smaller optimal size.

Keywords

Banking system credit risk merger and acquisition 

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Copyright information

© Kluwer Academic Publishers 1995

Authors and Affiliations

  • Jacob Paroush
    • 1
  1. 1.Department of EconomicsBar-Ilan UniversityRamat-GanIsrael

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