On the Size Distribution of Banks
FRB Richmond Economic Quarterly, Vol. 87, No. 4, Fall 2001, pp. 1-25
25 Pages Posted: 30 Nov 2012
Date Written: 2001
Important changes in U.S. banking regulation that took place during the nineties have inspired concern about the long-run size distribution of banks. The asset-size distribution of commercial banks is skewed to the right, and there has been a pronounced increase in asset concentration in the last 20 years. A detailed review of these stylized facts is provided and theoretical explanations for the coexistence of small and large banks in equilibrium are discussed.
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