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Economic Perspectives, Vol. 3, 2nd, No. 9, March 1979
Holding Company Affiliation and Scale Economies in Banking
How affiliation with a holding company affects the cost structure of banks has been a controversial subject in banking for some time. In support of their applications to acquire banks, holding companies argue that economies in the operation of banks can be achieved through affiliation. If these opportunities for economies do exist and if these economies are passed on to the public, then it may be argued that the resulting public benefits can be presumed to offset, in part or perhaps in whole, any anticompetitive effects present in the application.
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