What's different among banks?

• 成果类型: Article
• 署名作者: Cosimano, TF; McDonald, B
• 署名单位: University of Notre Dame
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/S0304-3932(97)00060-3
• 发表日期: 1998
• 页码: 57-70
• 关键词: Banking; monopoly power; competitive structure; reserve requirements

摘要

Based on commercial paper being a nearly perfect substitute for certificates of deposits (CDs) and CD reserve requirements creating a higher cost of funds for banks, Fama shows that the banking industry must have some monopoly power relative to other financial institutions. His analysis does not resolve whether this monopoly power is vested in banks collectively, vis-a-vis other financial institutions, or if the monopoly power extends to the level of individual banks. Using an event study framework to examine the elimination of a reserve requirement, we find significant evidence of monopoly power at the level of individual banks. (C) 1998 Elsevier Science B.V. All rights reserved.