The Consolidation of the Financial Services Industry¶
Berger, A. N., Demsetz, R. S., & Strahan, P. E. (1999). The Consolidation of the Financial Services Industry: Causes, Consequences, and Implications for the Future. Journal of Banking & Finance, 23(2), 2-4.
Cited by¶
1 citation across 1 artifact.
Each citation links to the sentence it supports in the citing article.
Primes¶
- Coarsening
- A worked instance shows the substance: a polycrystalline metal anneals as atoms diffuse from small grains to large, the mean grain size growing as a power of time and the count falling, with second-phase particles able to pin the boundaries and freeze the distribution; the same diagnostic applies to a fragmented regional-banking sector where regulatory pressure raises the per-firm boundary cost, the smallest banks fail, their assets flow to larger banks, antitrust acts as the pinning that slows the process, and the asymptotic state without intervention is a single firm — identical structure, different substrate.
This sourceDocuments drivers of bank consolidation — fixed regulatory/technology costs spread over a larger base, smaller banks absorbed — with antitrust review as the arresting constraint.
Supported in partVerified against the work's full text
Berger et al. document bank consolidation, failures reducing bank numbers, and regulators blocking mergers that raise concentration, but not the specific coarsening-style mechanism claimed.
“Regulators also prevent in-market M&As if the increases in concentration are expected to result in excessive increases in market power.”
- A worked instance shows the substance: a polycrystalline metal anneals as atoms diffuse from small grains to large, the mean grain size growing as a power of time and the count falling, with second-phase particles able to pin the boundaries and freeze the distribution; the same diagnostic applies to a fragmented regional-banking sector where regulatory pressure raises the per-firm boundary cost, the smallest banks fail, their assets flow to larger banks, antitrust acts as the pinning that slows the process, and the asymptotic state without intervention is a single firm — identical structure, different substrate.
Verification¶
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