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'Global Player' im Bankenwesen - ökonomisch sinnvoll oder problembehaftet?

Author

Listed:
  • Horst Gischer

    (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)

  • Toni Richter

    (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)

Abstract
Although recent experiences made during the ongoing international financial crisis call for smaller entities in banking systems, consolidation still takes place in many industrialized economies. The often stretched argument that large banks are able to establish economies of scale as well as econo-mies of scope, ignores at least the risks of financial intermediaries becoming ‘too big to fail’ or ‘too interconnected to fail’. Our analysis presents reliable evidence that even the assumption that big banks are less inefficient than small ones is far away from being convincing. We apply a range of indicators to test for both performance and risk taking capability of banks in different financial sys-tems. Our findings suggest empirical merits of diversified banking systems and higher systemic risk for financial industries dominated by global players.

Suggested Citation

  • Horst Gischer & Toni Richter, 2011. "'Global Player' im Bankenwesen - ökonomisch sinnvoll oder problembehaftet?," FEMM Working Papers 110012, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    • Handle: RePEc:mag:wpaper:110012
    as

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    File URL: http://www.fww.ovgu.de/fww_media/femm/femm_2011/2011_12.pdf
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    More about this item

    Keywords

    consolidation; bank performance;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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