Creator: Roberds, William. Series: Working paper (Federal Reserve Bank of Minneapolis. Research Dept.) Number: 264 Abstract:
A popular method of investigating the market effects of multibank holding company (MBHC) affiliation involves regression of banks' local market share on a dummy variable for MBHC affiliation. The usefulness of this procedure is called into question by means of a theoretical counterexample.
Keyword: Bank holding company, Bank merger, Nonprice competition, and Multibank holding companies Subject (JEL): D40 - Market structure and pricing - General and G21 - Financial institutions and services - Banks ; Other depository institutions ; Micro finance institutions ; Mortgages