Skip to main content

Foundations of a Bank Merger Control for Europe

  • Chapter
Competition, Efficiency, and Welfare
  • 67 Accesses

Abstract

Manfred Neumann stimulated thinking about “banking and antitrust”. By combining results of financial and industrial economics, he discussed whether shareholding by banks in business firms has anticompetitive effects in the non-bank industry (Neuberger and Neumann 1991). The present paper, too, will be on “banking and antitrust”, focusing on antitrust policy in the banking industry.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Akhavein, J.D., Berger, A.N. and Humphrey, D.B. (1997): The Effects of Megamergers on Efficiency and Prices: Evidence from a Bank Profit Function, Review of Industrial Organization 12, 95–139.

    Article  Google Scholar 

  • Allen, L. and Rai, A. (1996): Operational Efficiency in Banking: An International Comparison, Journal of Banking and Finance 20, 655–672.

    Article  Google Scholar 

  • Amel, D.F. and Liang, J.N. (1997): Determinants of Entry and Profits in Local Banking Markets, Review of Industrial Organization 12, 59–78.

    Article  Google Scholar 

  • Berger, A.N. (1995): The Profit-Structure Relationship in Banking — Tests of Market-Power and Efficient-Structure Hypotheses, Journal of Money, Credit and Banking 27, 404–431.

    Article  Google Scholar 

  • Berger, A.N. and Hannan, T.H. (1989): The Price-Concentration Relationship in Banking, Review of Economics and Statistics 71, 291–299.

    Article  Google Scholar 

  • Berger, A.N., Hunter, W.C. and Timme, S.G. (1993): The Efficiency of Financial Institutions: A Review and Preview of Research Past, Present and Future, Journal of Banking and Finance 17, 221–249.

    Article  Google Scholar 

  • Bisignano, J. (1992): Banking in the European Economic Community: Structure, Competition, and Public Policy, in Kaufman, G.G. (ed.): Banking Structures in Mayor Countries, Boston et al.

    Google Scholar 

  • Broecker, T. (1990): Credit-Worthiness Tests and Interbank Competition, Econometrica 58, 429–452.

    Article  Google Scholar 

  • Calem, P.S. and Carlino, G.A. (1991): The Concentration/Conduct Relationship in Bank Deposit Markets, Review of Economics and Statistics 73, 268–276.

    Article  Google Scholar 

  • Clark, J.A. (1996): Economic Cost, Scale Efficiency, and Competitive Viability in Banking, Journal of Money, Credit, and Banking 28, 342–364.

    Article  Google Scholar 

  • Clark, J.A. and Speaker, P.J. (1994): Economies of Scale and Scope in Banking: Evidence from a Generalized Translog Cost Function, Quarterly Journal of Business and Economics 33, 3–25.

    Google Scholar 

  • Dunham, C.R. (1986): Regional Banking Competition, New England Economic Review July/August, 3–19.

    Google Scholar 

  • Elliehausen, G.E. and Wolken, J.D. (1990): Banking Markets and the Use of Financial Services by Small and Medium-Sized Business, Federal Reserve Bulletin 76(10), 801–817.

    Google Scholar 

  • Frame, W.S. (1994): Examining Small Business Lending in Bank Antitrust Analysis, Federal Reserve Bank of Atlanta Economic Review March/April, 31–40.

    Google Scholar 

  • Frame, W.S. and Kamerschen, D.R. (1997): The Profit-Structure Relationship in Legally Protected Banking Markets Using Efficiency Measures, Review of Industrial Organization 12, 9–22.

    Article  Google Scholar 

  • Gardener, E.P.M. and Molyneux, P. (1993): Changes in Western European Banking, London.

    Google Scholar 

  • Gilbert, R.A. (1984): Bank Market Structure and Competition. A Survey, Journal of Money, Credit, and Banking 16, 617–645.

    Article  Google Scholar 

  • Gischer, H. (1995): Zinsdifferenzen, Verhandlungsfähigkeit und Bankenwettbewerb auf einem unvollkommenen Kreditmarkt, Jahrbücher für Nationalökonomie und Statistik 214, 532–556.

    Google Scholar 

  • Goldberg, L.G. and Rai, A. (1996): The Structure-Performance Relationship for European Banking, Journal of Banking and Finance 20, 745–771.

    Article  Google Scholar 

  • Greenspan, M.A. and Colclough, J.T. (1996): The Relevant Product Market for Bank Acquisitions, The Antitrust Bulletin 41, 453–464.

    Google Scholar 

  • Gual, J. and Neven, D. (1992): Deregulation of the European Banking Industry (1980–1991), Centre for Economic Policy Research, Discussion Paper No. 703, London.

    Google Scholar 

  • Hannan, T.H. (1991a): Bank Commercial Loan Markets and the Role of Market Structure: Evidence from Surveys of Commercial Lending, Journal of Banking and Finance 15, 133–149.

    Article  Google Scholar 

  • Hannan, T.H. (1991b): Foundations of the Structure-Conduct-Performance Paradigm in Banking, Journal of Money, Credit, and Banking 23, 68–84.

    Article  Google Scholar 

  • Humphrey, D.B. (1990): Why Do Estimates of Bank Scale Economies Differ?, Federal Reserve Bank of Richmond Economic Review 76, 38–50.

    Google Scholar 

  • Lang, G. and Welzel, P. (1996): Efficiency and Technical Progress in Banking: Empirical Results for a Panel of German Co-operative Banks, Journal of Banking and Finance 20, 1003–1023.

    Article  Google Scholar 

  • Lewis, A. and Pescetto, G. (1996): EU and US Banking in the 1990s, London.

    Google Scholar 

  • Molyneux, P., Altunbas, Y. and Gardener, E. (1996): Efficiency in European Banking, Chichester et al.

    Google Scholar 

  • Mooslechner, P. and Schnitzer, Y. (1994): Structure-Performance in Banking: An Application to a Typical Universal Banking System, in Aiginger, K. and Finsinger, J. (eds.): Applied Industrial Organization, Dordrecht, 167–186.

    Google Scholar 

  • Mueller, D.C. (1996): Lessons from the United States’s Antitrust History, International Journal of Industrial Organization 14, 415–445.

    Article  Google Scholar 

  • Neuberger, D. and Neumann, M. (1991): Banking and Antitrust: Limiting Industrial Ownership by Banks?, Journal of Institutional and Theoretical Economics 147, 188–199.

    Google Scholar 

  • Neuberger, D. (1994): Kreditvergabe durch Banken — mikroökonomische Theorie und gesamtwirtschaftliche Implikationen, Tübingen.

    Google Scholar 

  • Neuberger, D. (1997): Direct Banking — A Demand Pull and Technology Push Innovation, Thünen-Series of Applied Economic Theory, Working Paper No. 5, University of Rostock.

    Google Scholar 

  • Neuberger, D. (1998): Industrial Organization of Banking: A Review, International Journal of the Economics of Business 5, 97–118.

    Article  Google Scholar 

  • Neumann, M. (1994): Theoretische Volkswirtschaftslehre III Wachstum, Wettbewerb und Verteilung, 2nd Edition, München.

    Google Scholar 

  • Neven, D., Nuttall, R. and Seabright, P. (1993): Merger in Daylight. The Economics and Politics of European Merger Control, Centre for Economic Policy Research, London.

    Google Scholar 

  • N.N. (1997a): Auf kurze Sicht knirscht das gewaltig, Frankfurter Allgemeine Zeitung, July 23, 15.

    Google Scholar 

  • N.N. (1997b): Gemischte Gefühle über die Bankenfusion an der Börse, Frankfurter Allgemeine Zeitung, July 22, 16.

    Google Scholar 

  • N.N. (1997c): Es wird zu weiteren Fusionen deutscher Banken kommen, Frankfurter Allgemeine Zeitung, November 17, 22.

    Google Scholar 

  • N.N. (1997d): Eine der größten Investmentbanken der Welt entsteht, Frankfurter Allgemeine Zeitung, December 9, 20.

    Google Scholar 

  • N.N. (1997e): German banking. Built in Bavaria, The Economist, July 26, 69.

    Google Scholar 

  • N.N. (1997f): Gewinnverdopplung nach Bankfusion erwartet, Frankfurter Allgemeine Zeitung, December 9, 17.

    Google Scholar 

  • Peltzman, S. (1984): Comment on Bank Market Structure and Competition: A Survey, Journal of Money, Credit, and Banking 16, 650–656.

    Article  Google Scholar 

  • Peristiani, S. (1997): Do Mergers Improve the X-Efficiency and Scale Efficiency of US Banks? Evidence from the 1980s, Journal of Money, Credit, and Banking 29, 326–337.

    Article  Google Scholar 

  • Rhoades, S.A. (1982a): Structure-Performance Studies in Banking: An Updated Summary and Evaluation, Federal Reserve Bulletin, Washington, 477–478.

    Google Scholar 

  • Rhoades, S.A. (1982b): Welfare Loss, Redistribution Effect, and Restriction of Output due to Monopoly in Banking, Journal of Monetary Economics 9, 375–387.

    Article  Google Scholar 

  • Rhoades, S.A. (1996): Competition and Bank Mergers: Directions for Analysis from Available Evidence, The Antitrust Bulletin 41, 339–363.

    Google Scholar 

  • Rhoades, S.A. and Rutz, R.D. (1982): Market Power and Firm Risk. A Test of the ‘Quiet Life’ Hypothesis, Journal of Monetary Economics 9, 73–85.

    Article  Google Scholar 

  • Sharpe, S.A. (1990): Asymmetric Information, Bank Lending, and Implicit Contracts: A Stylized Model of Customer Relationships, Journal of Finance 45, 1069–1087.

    Google Scholar 

  • Shull, B. (1996): The Origins of Antitrust in Banking: An Historical Perspective, The Antitrust Bulletin 41, 255–288.

    Google Scholar 

  • Smirlock, M. (1985): Evidence on the (Non)relationship between Concentration and Profitability in Banking, Journal of Money, Credit and Banking 17, 69–83.

    Article  Google Scholar 

  • Smith, B.W. and Ryan, M.W. (1996): The Changing Nature of Antitrust Enforcement in Banking’s New Era, The Antitrust Bulletin 41, 481–488.

    Google Scholar 

  • Stiglitz, J.E. and Weiss, A. (1981): Credit Rationing in Markets with Imperfect Information, American Economic Review 71, 393–410.

    Google Scholar 

  • Tichy, G. (1990): Bankengröße und Effizienz, Kredit und Kapital 23, 358–388.

    Google Scholar 

  • Vives, X. (1991): Banking Competition and European Integration, in Giovannini, A. and Mayer, C. (eds.): European Financial Integration, Cambridge et al.

    Google Scholar 

  • Weber, D. (1991): “Bankenklauseln” bei der Fusionskontrolle — Gemeinschaftsrecht und Rechte der Mitgliedstaaten, in Kübier, F., Mertens, H.-J. and Werner, W. (eds.): Festschrift für Theodor Heinsius, Berlin-New York.

    Google Scholar 

  • White, L.J. (1996): Banking, Mergers, and Antitrust: Historical Perpectives, and the Research Tasks Ahead, The Antitrust Bulletin 41, 323–337.

    Google Scholar 

  • Whitehead, D.D. (1980): Relevant Geographic Banking Markets: How Should They Be Defined?, Federal Reserve Bank of Atlanta Economic Review, 20–28.

    Google Scholar 

  • Wolken, J.D. (1984): Geographic Market Delineation: A Review of the Literature, Staff Economic Studies 140, Board of Governors of the Federal Reserve System, Washington D.C.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 1999 Springer Science+Business Media Dordrecht

About this chapter

Cite this chapter

Neuberger, D. (1999). Foundations of a Bank Merger Control for Europe. In: Mueller, D.C., Haid, A., Weigand, J. (eds) Competition, Efficiency, and Welfare. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-5559-9_9

Download citation

  • DOI: https://doi.org/10.1007/978-1-4615-5559-9_9

  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-1-4613-7542-5

  • Online ISBN: 978-1-4615-5559-9

  • eBook Packages: Springer Book Archive

Publish with us

Policies and ethics