Monopoly and Competition in Banking

Monopoly and Competition in Banking explores the structural dynamics of banking markets, with a focus on the concentration of resources through branch banking systems. Using California as a primary case study—where branch banking has proliferated most rapidly—the book examines how banking concentration affects market competition and the monopoly problem. Employing tools from industrial organization and economic theory, the study offers a nuanced analysis of branch banking’s operational and economic implications, moving beyond descriptive accounts to present a data-driven framework for understanding banking market performance. The findings are relevant not only to California but also to other regions experiencing similar trends in banking consolidation. This work distinguishes itself by integrating statistical records with theoretical insights, providing a fresh perspective on the relationship between market structure and banking behavior. Key variables such as borrower size and pricing practices are analyzed to uncover fundamental patterns in banking operations. While acknowledging the limitations of existing data—such as the lack of time series for loan interest rates—the book emphasizes the need for further research into the market dynamics of both branch and unit banks. By combining a rigorous analytical approach with a call for deeper exploration, this study contributes significantly to the fields of banking economics and market regulation. This title is part of UC Press's Voices Revived program, which commemorates University of California Press’s mission to seek out and cultivate the brightest minds and give them voice, reach, and impact. Drawing on a backlist dating to 1893, Voices Revived makes high-quality, peer-reviewed scholarship accessible once again using print-on-demand technology. This title was originally published in 1954.