--%>

Mergers encourage the formation of new banks

Do mergers encourage the formation of new banks?
Yes. The increase in the number of new banks in the second half of the 1990s coincides with a surge in merger activity in the similar period. A study conducted through the Federal Reserve Bank of Kansas City recommend that new bank formation is positively related to prior merger activity. The study further points out that a higher rate of new bank formation is more strongly associated to mergers while ownership shifts away from small organizations to large ones or toward distant organizations.

   Related Questions in Finance Basics

  • Q : What is Appropriation Without Regard To

    What is Appropriation Without Regard To Fiscal Year (AWRTFY): The appropriation for a particular amount that is obtainable from year to year until completely expended.

  • Q : Question-total level of employment and

    Normal 0 false false

  • Q : Explain working of accounts receivable

    Explain working of accounts receivable factoring? And describe benefits to the two parties involved and risks? Factoring is while one firm sells accounts receivable (AR) to another. The purchasing firm is termed as a factor. The factor earns

  • Q : Gateways for biometric The different

    The different Gateways for biometric are as following: Transaction security: this is to secure customers transactions and so to protect their privacy both remotely and onsite.

  • Q : Describe usual pattern of cash flows

    Describe usual pattern of cash flows for share of preferred stock? How does the market fidn out the value of a share of preferred stock, given these promised cash flows?Preferred stock contains no maturity date hence, it has no maturity value.

  • Q : Define Financial Controls Financial

    Financial Controls: Any measure of how fine a company or department controls its costs, at times stated as how far beneath or over budget it is. Financial controls are a critical portion of any financial system. They make sure that the resources are b

  • Q : State statement of cash flows State

    State three major sections of the statement of cash flows? Cash flows from investing activities Cash flows from Operations Cash flows from financing activities Net change in cash balance Cash balance at beginning of period

  • Q : Describe demand factor Normal 0 false

    Normal 0 false false

  • Q : Why coefficient of variation is better

    Why is the coefficient of variation frequently a better risk measure while comparing different projects than the standard deviation?Whenever we desire to compare the risk of investments which have different means, we employ the coefficient of va

  • Q : The official unemployment rate Normal 0

    Normal 0 false false