quality of individual banks is opaque but can be inferred by creditors from aggregate signals about bank solvency. When bank …. This information contagion is more likely under clustered asset structures. In contrast, when bank debt is long …

-oriented regime for merger control increases banks’ stock prices, whereas it decreases those of non-financial firms. Moreover, bank … merger targets become more profitable and larger. A major determinant of the positive bank returns, after controlling inter … alia for the general quality of institutions and individual bank characteristics, is the opaqueness that characterizes the …

We model the impact of bank mergers on loan competition, reserve holdings and aggregate liquidity. A merger changes the … distribution of bank sizes and aggregate liquidity needs. Mergers among large banks tend to increase aggregate liquidity needs and … thus the public provision of liquidity through monetary operations of the central bank. …

stock prices of non-financial firms. Bank targets become more profitable and larger, while those of non-financial firms … remain mostly unaffected. A major determinant of the positive bank returns is the degree of opaqueness that characterizes the … institutional setup for supervisory bank merger reviews. The legal design of the supervisory control of bank mergers may therefore …