Surviving Merger Mania—Effects of Commercial Bank and Farm Credit Mergers on Rural Credit: Discussion

Surviving Merger Commercial Bank Mergers on Rural

For over 50 years in the middle of the 20’h century we had financial institutions that were bounded geographically as well as by type of product or service. They were insulated from other financial and non-financial institutions by restrictive charters and by regulations designed to limit competition between charters. All of this was in the name of safety and soundness, an outgrowth of the fina...

Credit Derivatives and Bank Credit Supply

Credit derivatives are the latest in a series of innovations that have had a significant impact on credit markets. Using a micro data set of individual corporate loans, this paper explores whether use of credit derivatives is associated with an increase in bank credit supply. We find evidence that greater use of credit derivatives is associated with greater supply of bank credit for large term ...

Occupational and Employment Variations in Commercial Bank Consumer Credit Risk

Credit quantity and credit quality: Bank competition and capital accumulation

In this paper we show that bank competition has an intrinsically ambiguous impact on capital accumulation. We further show that it is also responsible for the emergence of development traps in economies that otherwise would be characterized by unique equilibria. These results explain the conflicting evidence emerging from the recent empirical studies of the effects of bank competition on econom...

The Effects of Bank Mergers and Acquisitions on Credit Availability: Evidence from Corporate Data

A large literature on the effects of bank consolidation focuses on direct efficiency gains for participating banks and market power effects. The special nature of credit markets suggests that indirect informational effects for borrowers may be generated by bank consolidation. In particular, borrowers that depend on relationship-based lending may face a reduction in credit availability because s...