Tuesday, October 2, 2007
Posted by D. Daniel Sokol
John Ashton of Norwich Business School and the ESRC Centre for Competition Policy, University of East Anglia and Khac Pham of the ESRC Centre for Competition Policy, University of East Anglia have a new working paper that analyzes banking mergers in the UK titled Efficiency and Price Effects of Horizontal Bank Mergers.
ABSTRACT: This study provides an empirical assessment of the efficiency and interest rate changes occurring during 61 UK retail bank mergers. Key findings of the work include the general efficiency enhancing influence of UK bank mergers and the limited effect of merger on retail interest rates. Furthermore, different banking products appear to be influenced differently by mergers. It is proposed that future assessments of bank competition and mergers require an accommodation of different types of bank customer.