Describe the wave of mergers in the banking industry
Describe the wave of mergers in the banking industry?Many economic factors have caused banking institutions to merge over the past various years. What are these factors comprise Please explain breifly...
Expert
• Greater efficiency. Banks frequently are able to operate more cost efficiently by increasing their size. The costs of numerous functions don't double while the scale of operation doubles. Therefore mergers are one way to keep costs and prices down.
• Leveraging technology. Banks & their customers have become accustomed increasingly to the advantages of new and costly technologies. Lots of technologies are too costly unless costs can be spread over a large number of customers. Mergers are frequently necessary to allow banks to introduce & maintain the technologies customers demand increasingly.
• Changing laws. Laws which had prevented several banks from operating in more than one state recently have been eliminated or overridden. The advent of interstate banking and branching means more chance for banks operating in distinct states to merge with each other.
• Diversification. One effective means of controlling risks inherent in bank lending is to diversify operations across distinct geographic regions and different kind of customers. Mergers can help diversify such risks.
• Broader array of products. Mergers may give banking institutions chance to offer a broader array of services. A merger of two banks along with different expertise can result in a combination more to the liking of customers looking for one-stop shopping.
The difference among the price a consumer would have been eager to pay for the commodity and the price consumer really has to pay is termed as: (i) Gain. (ii) The substitution effect. (iii) The income effect. (iv) Consumer surplus.
While the price of watches is $35, in that case15 watches are sold on a typical day, the everyday’s total revenue is: (w) $475. (x) $525. (y) $350. (z) $150. Hello guys I want your advice. Please recommend so
What are the causes for diminishing returns to factor? Answer: 1) Over utilization of
In the quintile distribution of income, the term "quintile" represents
What is Marketability. Write some points for it.
The difference among pure competition and monopolistic competition is which: (w) monopolistic competitors generate more profit in the long run. (x) monopolistic competitors always ignore short term losses. (y) long run entry and exit is probable in pu
Consumption function: The relationship among income and consumption is termed as consumption function.
Location rents are: (1) really just normal profits. (2) generated while customers bear lower transportation costs through buying from one firm over another. (3) economic interest on the capital improvements to land. (4) unrelated to population density
What do you mean by the term privatization?
One of my friends can't succeed to get the solution of this question. Give me solution of this question. Under what circumstances can monopolistic competition and oligopoly describe stable prices?
18,76,764
1938254 Asked
3,689
Active Tutors
1420902
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!