Working Paper

Determinants of domestic and cross-border bank acquisitions in the European Union


Abstract: This paper analyzes the determinants of bank acquisitions both within and across 25 members of the European Union (EU-25) during the period 1997?2004. Our results suggest that poorly managed banks (those with a high cost-to-income ratio) and larger banks are more likely to be acquired by other banks in the same country. The probability of being a target in a cross-border deal is larger for banks that are quoted in the stock market. Finally, banks operating in more concentrated markets are less likely to be acquired by other banks in the same country but are more likely to be acquired by banks in other EU-25 countries.

Keywords: Banks and banking - Europe;

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Bibliographic Information

Provider: Federal Reserve Bank of Atlanta

Part of Series: FRB Atlanta Working Paper

Publication Date: 2008

Number: 2008-26