PRODUCTION COSTS FOR CONSOLIDATED MULTIBANK HOLDING COMPANIES COMPARED TO ONE-BANK ORGANIZATIONAL FORMS Academic Article uri icon

abstract

  • Economies of scale and scope for consolidated multibank holding companies (MBHCs) are examined with a translog cost function and are compared with one-bank holding companies (OBHCs) and independent banks. Empirical results indicate that costs curves are generally U-shaped for independent banks and OBHCs but are relatively flat for MBHCs. This evidence implies that banking organizations should prefer the MBHC to one-bank forms at higher output levels. Implications for bank regulatory policy and interstate banking are discussed. 1989.

published proceedings

  • JOURNAL OF ECONOMICS AND BUSINESS

author list (cited authors)

  • RANGAN, N., ZARDKOOHI, A., KOLARI, J., & FRASER, D.

citation count

  • 16

complete list of authors

  • RANGAN, N||ZARDKOOHI, A||KOLARI, J||FRASER, D

publication date

  • November 1989