Mergers, Branch Consolidation and Financial Exclusion in the US Bank Market

UB Economics Working Papers E19/397

49 Pages Posted: 7 Jan 2020

See all articles by Joan Calzada

Joan Calzada

University of Barcelona - Department of Political Economics

Xavier Fageda

University of Barcelona

Fernando Martínez-Santos

affiliation not provided to SSRN

Date Written: December 10, 2019

Abstract

We analyze the role of bank mergers as determinants of the evolution of branch presence at the county level. Panel regressions based on county-level branch density are used to study differences across urban versus rural counties as well as pre- and post-crisis. The results indicate that bank mergers contributed to the increase of branches in the pre-crisis period and to its reduction in the post-crisis period, but the expansion effect of the mergers before the crisis mainly took place in metropolitan counties. Additional results show that broadband penetration has contributed to the reduction in the number of branches after the crisis and that branch closures are associated with an increase in the share of unbanked and underbanked households at the county level.

Keywords: Bank branches, Mergers, Competition, Broadband, Financial Exclusion, United States

JEL Classification: L16, L22, G21, G34, G38

Suggested Citation

Calzada, Joan and Fageda, Xavier and Martínez-Santos, Fernando, Mergers, Branch Consolidation and Financial Exclusion in the US Bank Market (December 10, 2019). UB Economics Working Papers E19/397, Available at SSRN: https://ssrn.com/abstract=3504503 or http://dx.doi.org/10.2139/ssrn.3504503

Joan Calzada (Contact Author)

University of Barcelona - Department of Political Economics ( email )

Av. Diagonal, 696
Barcelona, 08034
Spain
+34 93 402 1933 (Phone)
+34 93 402 4573 (Fax)

Xavier Fageda

University of Barcelona ( email )

Av. Diagonal 690
08034 Barcelona
Spain
0034 934021947 (Phone)
0034 934024573 (Fax)

Fernando Martínez-Santos

affiliation not provided to SSRN

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