The effect of industry consolidation and deposit insurance reform on the resiliency of the U.S. bank insurance fund

Bank Liability Structure, FDIC Loss, and Time to Failure: A Quantile Regression Approach

“…This approach reflects the idea that deposit insurers are particularly concerned about those failures that may pose a systemic threat to the insurance fund. Jones and Oshinsky (2007) point out that the solvency of the bank insurance fund is closely tied to the soundness of the largest institutions.…”

Mergers and Acquisitions of Financial Institutions: A Review of the Post-2000 Literature

“…Brewer and Jagtiani (2007) also found higher premiums for targets banks over a critical size. Jones and Oshinsky (2007) examined the probability of insolvency for the FDIC-administered Bank Insurance Fund; they find that fund insolvency risk has increased over time and that the size of the ten largest banks now poses a higher fund insolvency risk than in the past.…”

Competition, Law, and the Power of (Imagined) Geography: Market Definition and the Emergence of Too‐Big‐to‐Fail Banking in the United States

“…Moreover, the pace of consolidation grew consistently, increasing fourfold between the early 1980s and the early 1990s (Shaffer ) and continuing to increase in the second half of the latter decade, with Dymski () and others identifying 1997 and 1998 as the height of the merger frenzy. More than 5,400 bank mergers, involving more than $5 trillion in assets, took place between 1990 and 2005 (Jones and Oshinsky ). The bald numerical outcome of this consolidation was a decline in the number of U.S. banks from approximately 15,000 in the early 1980s to approximately 9,000 in the late 1990s (Kramer ).…”

“…In 74 of the more than 5,000 bank mergers between 1990 and 2005, both parties to the transaction had more than $10 billion in assets. The result was that the share of national industry assets held by just the 10 largest commercial banks rose from 25 percent in 1990 to 55 percent at year‐end 2005 (Jones and Oshinsky ).…”