Bank mergers in the financial crisis - a competition policy perspective


Hellwig, Michael ; Laser, Falk Hendrik


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URL: https://madoc.bib.uni-mannheim.de/53461
URN: urn:nbn:de:bsz:180-madoc-534615
Document Type: Working paper
Year of publication: 2019
The title of a journal, publication series: ZEW Discussion Papers
Volume: 19-047
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: D22 , G21 , G34 , L11 , L25 , L40 , L41,
Keywords (English): Antitrust , competition policy , merger analysis , state aid , retail banking , random-coefficients logit models , differentiated products
Abstract: We analyze a large merger in the Dutch banking market during the financial crisis using disaggregated data. Based on a merger simulation model, we evaluate merger-induced changes in the interest rates for savings accounts. We find that the merging banks decreased interest rates by 3 to 5 percent and competitors by up to 1 percent. These anti-competitive effects translate into a loss of consumer welfare by roughly 69 million euros in 2010. We identify heterogeneous effects indicating that less educated consumers with lower savings are most affected. Our findings highlight the important role of competition policy during financial crisis mitigation.

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




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Hellwig, Michael ; Laser, Falk Hendrik (2019) Bank mergers in the financial crisis - a competition policy perspective. Open Access ZEW Discussion Papers Mannheim 19-047 [Working paper]
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