An Economic Perspective of Big Banks

Posted: 9 Apr 2016

See all articles by Benton E. Gup

Benton E. Gup

University of Alabama - Culverhouse College of Commerce & Business Administration

Date Written: April 7, 2016

Abstract

Industry consolidation is a natural process that contributed to the concentration of a small number of large banks. They have both economies of scale and scope. More importantly, these globally systemically important banks (G-SIBs) provide a wide range of both domestic and international services and functions that are crucial to both our domestic and international trade that cannot be provided by smaller community banks. Simply stated, they have a global footprint that facilitates both our imports, exports, and payment systems. It is also important to note that some of the world’s largest foreign banks also have extensive operations in the United States.

Keywords: Banks, Break-up, Consolidation, Global, Mergers

JEL Classification: G21, G28

Suggested Citation

Gup, Benton E., An Economic Perspective of Big Banks (April 7, 2016). Available at SSRN: https://ssrn.com/abstract=2760408

Benton E. Gup (Contact Author)

University of Alabama - Culverhouse College of Commerce & Business Administration ( email )

Culverhouse College of Business
Tuscaloosa, AL 35487-0223
United States

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