[go: up one dir, main page]

  EconPapers    
Economics at your fingertips  
 

Bank mergers and the dynamics of deposit interest rates

Ben Craig and Valeriya Dinger

No 2008,02, Discussion Paper Series 2: Banking and Financial Studies from Deutsche Bundesbank

Abstract: Despite extensive research interest in the last decade, the banking literature has not reached a consensus on the impact of bank mergers on deposit rates. In particular, results on the dynamics of deposit rates surrounding bank mergers vary substantially across studies. In this paper, we aim for a comprehensive empirical analysis of a bank merger's impact on deposit rate dynamics. We base the analysis on a unique dataset comprising deposit rates of 624 US banks with a monthly frequency for the time period 1997-2006. These data are matched with individual bank and local market characteristics and the complete list of bank mergers in the US. The data allow us to track the dynamics of bank mergers while controlling for the rigidity of the deposit rates and for a range of merger, bank and local market features. An innovation of our work is the introduction of an econometric approach of estimating the change of the deposit rates given their rigidity.

Keywords: Deposit rate dynamics; bank mergers; deposit rate rigidity (search for similar items in EconPapers)
JEL-codes: G21 L11 (search for similar items in EconPapers)
Date: 2008
New Economics Papers: this item is included in nep-ban, nep-cba, nep-com and nep-ind
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/19779/1/200802dkp_b_.pdf (application/pdf)

Related works:
Journal Article: Bank Mergers and the Dynamics of Deposit Interest Rates (2009) Downloads
Working Paper: Bank mergers and the dynamics of deposit interest rates (2008) Downloads
Working Paper: Bank mergers and the dynamics of deposit interest rates (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:bubdp2:7218

Access Statistics for this paper

More papers in Discussion Paper Series 2: Banking and Financial Studies from Deutsche Bundesbank Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().

 
Page updated 2023-11-08
Handle: RePEc:zbw:bubdp2:7218