Handbook of Financial Intermediation and Banking

CHAPTER 10 Consolidation in the U.S. Banking Industry: Is the “Long, Strange Trip” About to End?

Kenneth D. Jones

FDIC

Tim Critchfield

FDIC

1. Overview of Structural Change in the U.S. Banking Industry 1984–2003

1.1. Industry Size

1.2. Industry Concentration

2. Fundamental Causes of Consolidation

2.1. Environmental Factors

2.2. Microeconomic Factors in Merger Decisions

3. The Effects of Consolidation

4. Projections of Banking Industry Structure

4.1. Review of Previous Projections and Their Methodologies

4.2. New Linear Extrapolations: A Comparison with the Literature

4.3. Beyond Linear Extrapolations

5. Conclusion

References

The authors wish to thank Tyler Davis, Ron Kidd, Terry Kissinger, Steve McGinnis, and Chau Nguyen for their valuable ...