Allen N Berger, Anthony Saunders, Joseph M Scalise, Gregory F Udell
ABSTRACT
We examine the effects of bank M&As on small business lending using
data on over 6,000 recent U.S. bank M&As. We are the first to decompose
the impact of M&As into static effects from simply melding the antecedent
institutions, and dynamic effects associated with post-M&A refocusing
of the consolidated institution. We are also the first to estimate the
dynamic reactions of other local banks. We find that the static effects
of consolidation reduce small business lending, but are mostly offset by
the reactions of other banks, and in some cases also by refocusing efforts
of the consolidating institutions themselves.
Berger: (202) 452-2903 aberger@frb.gov
Saunders: (212) 998-0711 asaunder@stern.nyu.edu
Udell: (212) 998-0705 gudell@stern.nyu.edu
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