Geographical Deregulation and Competition in U.S. Banking Markets

The Financial Review

Posted: 21 Apr 1998

See all articles by Asghar Zardkoohi

Asghar Zardkoohi

Texas A&M University - Department of Management

Donald R. Fraser

Texas A&M University - Department of Finance

Abstract

The effects of geographical deregulation on competition in banking markets is examined. Using a model that develops an index of competition as proposed by Bresnahan and applied to banking markets by Shaffer, the empirical evidence suggests that geographical deregulation has not had a significant impact on competition. The limited effects of geographical deregulation on competition is consistent with other evidence presented, suggesting that banking markets were already highly competitive. In those states where a significant effect was observed, geographical deregulation increased the degree of competition in some states but had the opposite effect in others.

JEL Classification: G21, G28

Suggested Citation

Zardkoohi, Asghar and Fraser, Donald R., Geographical Deregulation and Competition in U.S. Banking Markets. The Financial Review, Available at SSRN: https://ssrn.com/abstract=78242

Asghar Zardkoohi (Contact Author)

Texas A&M University - Department of Management ( email )

430 Wehner
College Station, TX 77843-4218
United States
919-845-2043 (Phone)
919-845-9641 (Fax)

Donald R. Fraser

Texas A&M University - Department of Finance ( email )

430 Wehner
College Station, TX 77843-4218
United States
979-845- 2020 (Phone)

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