{"title":"Market Deposit-Loan Imbalances and Bank M&A Outcomes","authors":"Leonid Pugachev","doi":"10.2139/ssrn.3916274","DOIUrl":"https://doi.org/10.2139/ssrn.3916274","url":null,"abstract":"Evidence on how bank merger and acquisition (M&A) affects bank customers is mixed. I reexamine deposit and loan volumes and prices around all 2,673 ownership-changing U.S. bank M&As between 1998 and 2016. M&A impacts target markets differently based on their deposit-loan imbalance. In markets where loans are scarce relative to deposits, acquirers lend more and gather fewer deposits; where deposits are scarce, the opposite holds. Incumbents counteract these changes but acquirer effects dominate. Thus, M&A equilibrates markets, reducing deposit-loan imbalances. Equilibration predicts better economic outcomes. Deposit and loan price analysis is inconclusive. Results support a welfare-enhancing view of bank M&A.","PeriodicalId":448854,"journal":{"name":"Fifth Singapore International Conference on Finance 2011 (Archive)","volume":"1971 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123538907","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}