00000nam 2200000zi 4500 9.896627 CaOODSP 20221107174353 m o d f cr cn||||||||| 210217t20212021oncd ob f000 0 eng d CaOODSP eng rda CaOODSP n-us--- FB3-5/2021-9E-PDF Granja, João, author. Market concentration and uniform pricing : evidence from bank mergers / by João Granja and Nuno Paixão. Ottawa, Ontario, Canada : Bank of Canada = Banque du Canada, 2021. ©2021 1 online resource (ii, 61 pages) : graphs. text txt rdacontent computer c rdamedia online resource cr rdacarrier Staff working paper = Document de travail du personnel, 1701-9397 ; 2021-9 "February 11, 2021." Cover title. Includes bibliographical references (pages 30-32). "We show that U.S. banks price deposits almost uniformly across their branches and that this pricing practice is crucial to explain the deposit rate dynamics following bank mergers. We find a strong and sharp post-merger convergence between the deposit rates of the acquired branches and the median deposit rate of the acquirer. This pattern is almost fully explained by adjustments in the deposit rates of the acquired branches, irrespective of whether their rates were above or below those practiced by the acquirer. Acquired branches lose deposits and local market share, especially when they decrease their rates due to uniform pricing. Local competitors respond to changes in deposit rates at the acquired branches by adjusting their own deposit rates in the same direction. We find that pre-merger differences in deposit rates between merged entities explain more of the post-merger evolution of deposit rates than the predicted changes in local market concentration induced by the merger. This result indicates that competition authorities would be well advised to review the potential impact of premerger pricing differences in evaluating a merger within an industry with strong uniform pricing practices"--Abstract, page ii. Bank mergers United States. Bank deposits United States. Industrial organization (Economic theory) Banques Fusion États-Unis. Dépôts bancaires États-Unis. Économie industrielle. Bank of Canada, issuing body. Staff working paper (Bank of Canada) 1701-9397 ; 2021-9. (CaOODSP)9.806221 PDF 1.08 MB https://publications.gc.ca/collections/collection_2021/banque-bank-canada/FB3-5-2021-9-eng.pdf