全球智库信息集成服务系统(G2TT): DP15069 The Impact of Alternative Forms of Bank Consolidation on Credit Supply and Financial Stability

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP15069
	DP15069 The Impact of Alternative Forms of Bank Consolidation on Credit Supply and Financial Stability
	Emanuele Tarantino; Nicola Pavanini; Sergio Mayordomo
发表日期	2020-07-19
出版年	2020
语种	英语
摘要	Between 2009 and 2011, the Spanish banking system underwent a restructuring process based on consolidation of savings banks. The program's design allows us to study how alternative forms of consolidation affect credit supply and financial stability. Using detailed data from the Spanish credit registry, we first show that banks consolidating via mergers or business groups are ex-ante comparable with respect to local market's overlap, financial and economic characteristics. We then find that, relative to business groups, the market power of merged banks produced a contraction in credit supply, higher interest rates, but also a reduction in non-performing loans in the economy, in the loans extended to risky firms and in the risk of bank default. To determine the welfare effects of consolidation, we estimate a structural model of credit demand and supply. In our framework, banks compete on interest rates and can ration borrowers. We also allow borrower surplus to depend on banks' default risk. Through counterfactuals, we quantify cost efficiencies and improvements in the risk of default that consolidation should deliver to outweigh welfare losses from reduced credit supply.
主题	Financial Economics ; Industrial Organization
URL	https://cepr.org/publications/dp15069-1
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/544024
推荐引用方式 GB/T 7714	Emanuele Tarantino,Nicola Pavanini,Sergio Mayordomo. DP15069 The Impact of Alternative Forms of Bank Consolidation on Credit Supply and Financial Stability. 2020.