Detalle Publicación


Ultimate ownership and bank competition

Autores: Azar, Jose Ariel; Raina, S. (Autor de correspondencia); Schmalz, M.
Título de la revista: FINANCIAL MANAGEMENT
ISSN: 0046-3892
Volumen: 51
Número: 1
Páginas: 227 - 269
Fecha de publicación: 2022
We document substantial time-series and cross-sectional variation in branch-level deposit account interest rates, maintenance fees, and fee thresholds, and examine whether variation in bank concentration helps explain variation in these prices. Herfindahl-Hirschman Index (HHI) alone is not correlated with any of the outcome variables. A generalized HHI (GHHI) capturing both common ownership (the degree to which banks are commonly owned by the same investors) and cross-ownership (the extent to which banks own shares in each other), is strongly correlated with all prices, even when we limit cross-sectional variation in bank ownership to only that predicted by the growth of index funds.