Running head: MACROECONOMICS RESEARCH1Macroeconomics ResearchStudent Name:Course:Institutional AffiliationMACROECONOMICS RESEARCH2Macroeconomics ResearchImpact of the Bank Mergers on the Structure of American BankingA merger is a legal combination of two or more companies into a single largeorganization. When firms merge, they use similar technology, workforce, and resources toachieve their objectives. Bank mergers in the US have led to the following impacts. For instance,studies have confirmed that there is a reduced efficiency in terms of operation and productivity.This could be attributed to the sizeable operational base that causes inconveniences. However,studies have also confirmed that bank mergers have led to increased credit availability, depositservice charges, and interest rates. In addition to this, the merger has not led to a profit increase(Kuriakose & Paul, 2016). However, real estate credit and stockholder risks have recorded anincrease. Banks merge because they want to reduce the profitability of an already developedbank in the market. Banks may also merge to fill the business gaps that may be prevalent in theindustry. Banks may also join to increase their customer bases and try to improve theirprofitability.Federal Funds Market and how it helps banks strike a balance between liquidity andprofitabilityFederal funds are instant borrowings that take place between banks and otherorganizations with an objective of maintaining their b ...
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