Abstract
We propose a spatial competition model to study banks’ strategic responses to the asymmetric Spanish geographic deregulation process. We find that once the geographic deregulation process finishes, inter-regional mergers between savings banks are optimal whenever the economies of scale associated to merging activities are low. If there are large gains, then there will be mergers between savings and commercial banks.
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We are thankful to two anonymous referees, and to María Ángeles de Frutos (the Editor in charge), whose detailed comments helped us to improve the quality of the manuscript and to shape the exposition. We gratefully acknowledge financial support from the Spanish Ministry of Education (project ECO2008-04424) and from the Andalusian High Excellence Research Program (project SEJ 4794).
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Lozano-Vivas, A., Meléndez-Jiménez, M.A. & Morales, A.J. With whom to merge? A tale of the Spanish banking deregulation process. SERIEs 2, 159–184 (2011). https://doi.org/10.1007/s13209-010-0035-2
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DOI: https://doi.org/10.1007/s13209-010-0035-2