1. Associate Professor of Economics, Department of Economics, Finance and Legal Studies, College of Commerce and Business Administration, University of Alabama, Tuscaloosa, Alabama, USA;2. Vice President, COMEX, New York, New York, USA
Abstract:
This paper presents new evidence on the effects of multibank holding companies on the structure of local commercial bank markets for deposits. A distinguishing feature of this study is the use of pooled cross-section and time-series data. It is concluded that multibank holding company activity has had a procompetitive effect on the local banking markets in the sample. This finding, which is quite robust under alternative model specifications, has important implications for state and federal policy toward this organizational form and toward intra- and interstate banking.