Comment on Milbourn, Boot, and Thakor

Article Abstract:

The consolidation of the financial services industry is allegedly being driven by the desire of bank CEOs to maximize shareholder value and enhance their managerial reputation. This behavior of CEOs is thought to be undermining the success of mergers for the simple reason that bigger firms are more difficult to manage. A thorough analysis of bank mergers in recent years, however, reveals that this theory may not be entirely true. For one thing, the increase in the number of non-bank financial institutions has expanded effective market areas and boosted the potential number of competitors in any geographic market. The potential for scale economies may also have increased as a result of technological innovations in the financial services sector.

Financial Services, Finance and Insurance, Acquisitions & Mergers Analysis, Chief Executive-Functions, Analysis, Management, Mergers, acquisitions and divestments, Financial services industry, Acquisitions and mergers, Bank mergers, Financial institutions, Chief executive officers, Executives, Financial analysis

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Risk-based capital requirements and bank portfolio risk

Article Abstract:

This article discusses the influence of bank regulations, risk-based capital, bank managers and constrained equity on fully insured bank deposits.

United States, Statistical Data Included, Laws, regulations and rules, Finance, Influence, Deposit insurance, Deposit banking, Depositories (Banking)

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