French Bank Mergers and Acquisitions and Loan Pricing

Authors

  • Houda Ben Said University of Economic and Management, Sfax-Tunisia
  • Abdelfettah Bouri University of Economic and Management, Sfax-Tunisia.

DOI:

https://doi.org/10.17722/ijrbt.v5i3.226

Keywords:

French Banking Sector, Mergers-Acquisitions, Relationship Lending, Loan Pricing

Abstract

This paper analyzes the effects of mergers and acquisitions on bank pricing behavior. Using the Monti-Klein Model and the data set of French consolidation transactions happening between 1996 and 2006, we find that, on average, loan pricing tends to increase with the default risk and have negative relationship with efficiency and GDP growth rate. Bank profitability, deposit ratio and liquid risk have no significant impact. Bank market characteristic (CR5 concentration ratio) was not been significant too. French banks decide their loan interest rates independently from market concentration level.

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Published

2014-12-31

Issue

Vol. 5 No. 3 (2014): International Journal of Research in Business and Technology

Section

Articles