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The Geographic Scope of Retail Deposit Markets

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Abstract

In analyzing the competitive effects of proposed bank mergers and acquisitions, United States antitrust authorities rely on two important assumptions: (1) that markets for at least some types of banking products are local in scope, and (2) that market concentration measures can serve as effective proxies for banks' abilities to extract monopoly rents. This paper uses balance sheet data from most banks operating in the United States in 1988, 1992, 1996, and 1999 to test these assumptions.

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Authors and Affiliations

  1. Board of Governors of the Federal Reserve System, Russia

    Erik Heitfield & Robin A. Prager

Authors
  1. Erik Heitfield
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  2. Robin A. Prager
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Heitfield, E., Prager, R.A. The Geographic Scope of Retail Deposit Markets. Journal of Financial Services Research 25, 37–55 (2004). https://doi.org/10.1023/B:FINA.0000008664.47740.a5

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  • DOI: https://doi.org/10.1023/B:FINA.0000008664.47740.a5

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