An. Berger et al., The consolidation of the financial services industry: Causes, consequences, and implications for the future, J BANK FIN, 23(2-4), 1999, pp. 135-194
This article designs a framework for evaluating the causes, consequences, a
nd future implications of financial services industry consolidation, review
s the extant research literature within the context of this framework (over
250 references), and suggests fruitful avenues for future research. The ev
idence is consistent with increases in market power from some types of cons
olidation; improvements in profit efficiency and diversification of risks,
but little or no cost efficiency improvement on average; relatively little
effect on the availability of services to small customers; potential improv
ements in payments system efficiency; and potential costs on the financial
system from increases in systemic risk or expansion of the financial safety
net. (C) 1999 Elsevier Science B.V. All rights reserved.