Merger savings take smart management

Merger savings take smart management

Banking industry mergers and acquisitions are commonly justified on the basis of the expense reductions expected to result from economies of scale. Many large banks have found, however, that increased size does not automatically result in lower per-unit operating cost. Sound management practices are...

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Bibliographic Details
Published in:The American banker Vol. 157; no. 176; p. 9
Main Author: Swords, William E
Format: Journal Article
Language:English
Published: SourceMedia, Inc 11-09-1992
Subjects:
Acquisitions and mergers
Banking industry
Economic aspects
Mergers, acquisitions and divestments
Online Access:Get full text
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Summary:Banking industry mergers and acquisitions are commonly justified on the basis of the expense reductions expected to result from economies of scale. Many large banks have found, however, that increased size does not automatically result in lower per-unit operating cost. Sound management practices are more likely than 'economy of scale,' a purely theoretical concept, to result in cost reductions.
ISSN:0002-7561