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Bank Consolidation and Performance The Argentine Experience. [electronic resource] : - Washington, D.C. : International Monetary Fund, 2004. - 1 online resource (32 p.) - IMF Working Papers; Working Paper ; No. 04/149 . - IMF Working Papers; Working Paper ; No. 04/149 .

We examine a large panel of more than 100 banks from Argentina to study the effects of bank consolidation on performance between December 1995 and December 2000, a period of heavy bank consolidation and relative calm. Overall, we find a positive and significant effect of bank consolidation on bank performance. Bank returns increase with consolidation, and insolvency risk is reduced. Additionally, the study suggests that mergers and privatizations have a beneficial effect on bank returns. The effects of a bank acquisition on return on equity is, however, negative. Acquisitions do not seem to have any effect on risk-adjusted returns. The study also finds that a bank's insolvency risk is reduced significantly through mergers and privatization and is unrelated to bank acquisitions.

ISBN: 145185692X : 15.00 USD

ISSN: 1018-5941

Standard No.: 10.5089/9781451856927.001 doi

Subjects--Topical Terms:
Bank Consolidation
Bank Performance
Banking Industry in Emerging Markets
Banking System
Banking
Financial Institutions and Services

Subjects--Geographic Terms:
Argentina