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Mergers and Acquisitions in the Spanish Banking Industry: some Empirical Evidence

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  • Ignacio Fuentes
  • Teresa Sastre

Abstract

Since the late eighties, the Spanish banking system has been undergoing major changes that have affected both its structure and the nature of strategic interaction among banking institutions. Various different strategies have been adopted to tackle the demands of this new operating environment, one such strategy having been consolidation via mergers and acquisitions. This paper attempts to provide some empirical evidence on the impact of the consolidation process on the monetary transmission mechanism, the degree of competition in banking markets and the performance of banking institutions.

Suggested Citation

  • Ignacio Fuentes & Teresa Sastre, 1999. "Mergers and Acquisitions in the Spanish Banking Industry: some Empirical Evidence," Working Papers 9924, Banco de España.
    • Handle: RePEc:bde:wpaper:9924
    as

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    File URL: https://www.bde.es/f/webbde/SES/Secciones/Publicaciones/PublicacionesSeriadas/DocumentosTrabajo/99/Fic/dt9924e.pdf
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    References listed on IDEAS

    as
    1. Rhoades, Stephen A., 1998. "The efficiency effects of bank mergers: An overview of case studies of nine mergers," Journal of Banking & Finance, Elsevier, vol. 22(3), pages 273-291, March.
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    3. Jaumandreu, Jordi & Lorences, Joaquin, 2002. "Modelling price competition across many markets (An application to the Spanish loans market)," European Economic Review, Elsevier, vol. 46(1), pages 93-115, January.
    4. Joaquín Maudos, 1996. "Eficiencia, cambio técnico y productividad en el sector bancario español: una aproximación de frontera estocástica," Investigaciones Economicas, Fundación SEPI, vol. 20(3), pages 339-358, September.
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    6. Luis Orea Sánchez & Rafael Álvarez Cuesta, 1998. "- Firm-Specific Temporal Variation In Technical Efficency Results Of: A Stochastic Output Distance Function," Working Papers. Serie EC 1998-27, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    7. Abbott, Thomas III, 1994. "Observed price dispersion: Product heterogeneity, regional markets, or local market power?," Journal of Economics and Business, Elsevier, vol. 46(1), pages 21-37, February.
    8. King, Stephen R, 1986. "Monetary Transmission: Through Bank Loans or Bank Liabilities?," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 18(3), pages 290-303, August.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Valverde, S. Carbo & Humphrey, David B. & Fernandez, F. Rodriguez, 2003. "Bank deregulation is better than mergers," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 13(5), pages 429-449, December.
    2. Abdul, Farida & Ochenge, Rogers, 2020. "Do mergers and acquisitions impact bank lending behavior in Kenya?," KBA Centre for Research on Financial Markets and Policy Working Paper Series 45, Kenya Bankers Association (KBA).
    3. Valverde, Santiago Carbo & Humphrey, David B., 2004. "Predicted and actual costs from individual bank mergers," Journal of Economics and Business, Elsevier, vol. 56(2), pages 137-157.

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    More about this item

    Keywords

    MONETARY POLICY ; BANKS ; INDUSTRY ; MONEY;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General

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