--%>

Market share of large bank holding companies

Have the large bank holding companies enhanced their market share at the cost of smaller institutions?
No. A study conducted through the Federal Reserve Bank of New York reveals that the increase in the concentration of assets is primarily because of external growth through mergers and acquisitions, implying that the enhanced concentration "reflects a transfer of banks assets as ownership changed through consolidation, instead of internal growth of existing subsidiaries." Therefore, the key motivation behind the rise in merger activity in the year of 1990s was the removal of excess capacity instead of an effort to employ competitive advantage to expand existing operations.

   Related Questions in Finance Basics

  • Q : Question on price level Normal 0 false

    Normal 0 false false

  • Q : Explain Feasibility Analysis

    Feasibility Analysis: It is an analysis of the ability to finish a project successfully, taking into account legal, technological, economic, scheduling and various other factors. Instead of just diving into a project and hoping for th

  • Q : Define Subcommittee Subcommittee : The

    Subcommittee: The smaller groupings into which the Senate or Assembly committees are frequently divided. For illustration, the fiscal committees which hear the Budget Bill are classified into subcommittees usually by departments or subject area (examp

  • Q : Which ratios would banker is interested

    Which ratios would banker is most interested while assuming whether to approve an application for short-term business loan? Illustrate.Bankers and other lenders employ liquidity ratios to distinguish whether to extend short-term credit to a firm

  • Q : Why do assets equal the sum of total

    Why do overall assets equal the sum of total liabilities and equity?  Describe.            Assets = Liabilities + EquityAssets are the items of value business owns. Liabilities ar

  • Q : Define Warrant Warrant : It is an order

    Warrant: It is an order drawn by the State Controller directing the State Treasurer to reimburse a particular amount, from a specific fund, to the entity or person named. A warrant usually corresponds to a blank check however is not essentially payabl

  • Q : Define Special Funds Special Funds :

    Special Funds: For legal base budgeting purposes, funds produced by statute, or administratively per Government Code Section 13306, employed to budget and account for taxes, licenses, and fees which are restricted by law for specific activities of the

  • Q : Determine per unit cost of production

    Normal 0 false false

  • Q : Problem on tax and spend at possible

    Normal 0 false false

  • Q : Define Federal Fiscal Year Federal

    Federal Fiscal Year (FFY): The twelve month accounting period of the federal government, starting on October 1 and ending the following September 30. For illustration, a reference to FFY 2013 means the period starting October 1, 2012 and ending at Sep