Abstract
The purpose of this paper is twofold. First, it argues that merger and acquisition activity reduces the total risk in the banking system. Second, it suggests that the recent high level of merger and acquisition activity as well as the high rate of banks failure is an adjustment process of a banking system to a smaller optimal size.
| Original language | English |
|---|---|
| Pages (from-to) | 53-67 |
| Number of pages | 15 |
| Journal | Review of Industrial Organization |
| Volume | 10 |
| Issue number | 1 |
| DOIs | |
| State | Published - Feb 1995 |
Keywords
- Banking system
- credit risk
- merger and acquisition
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