Bank Mergers Can Spoil Your Savings: research by Bangor Business School academic wins ‘Best Paper’ award
UK bank and building society mergers do not benefit their customers. Research measuring how interest rates and the range of services provided to depositors change after bank mergers has just been awarded a ‘Best Paper’ award. The work undertaken by Dr John Ashton from Bangor Business School was published in the International Journal of Economics of Business, a journal classified as 'highly regarded' by the UK Association of Business Schools. The award was made for the most significant contribution to the subject covered by the journal, that of economics clearly applicable to business or public policy issues.
In the study, 57 UK banking mergers over the period 1989–2008 were examined and it was reported that different deposit services and deposits of different values face insignificant levels of interest-rate change after mergers. Further the availability of notice deposit services for low and high levels of savings are reduced after mergers. Findings from the study have previously been discussed in the UK media, including Radio 4, the press, and on the London Stock Exchange web site.
The journal is available to view online.
Publication date: 7 February 2013