Bank consolidation: A central banker’s perspective

  • Frederic S. Mishkin
Part of the The New York University Salomon Center Series on Financial Markets and Institutions book series (SALO, volume 3)


This paper looks at why bank consolidation has been taking place in the United States and what the structure of the banking industry might look like in the future. It then discusses the implications of bank consolidation for the economy and the challenge it poses for central bankers.

From the 1930s until the 1980s, the number of commercial banks in the United States was remarkably stable, with the number of banks between the 13,000 and 15,000 level. Yet as Figure 1 shows, beginning in the mid-1980s, the number of commercial banks began to fall dramatically. Why has this dramatic decline taken place?


Central Banker Commercial Bank Large Bank Small Bank Bank Failure 
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Copyright information

© Springer Science+Business Media Dordrecht 1998

Authors and Affiliations

  • Frederic S. Mishkin

There are no affiliations available

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