It is undisputed today that there are no generally valid formulas to determine the best size of a bank for the success of its business. It can be empirically proven that there are successful and less successful institutions in every size class and with approximately the same business strategies. Even very small institutions – as can still be found today especially in Basel, Geneva, Lausanne and Zurich – can be exceptionally successful and operate both very economically (economical: ratio of costs to output) and profitably (profitable: ratio of profit to capital employed). – See alliances, cross-border, bank discounters, bank mergers, bank size, bankruptcy-because-small thesis, assertion strategy, contestability, decentralization principle, Gibrat rule, gigabank, size effects, consolidation, correspondent banking relationship, megamania, megamergers, multi-boutique approach, Octopus, Penrose theorem, Sifi oligopoly, subsidiarity principle, synergy potentials. – Cf. ECB Monthly Bulletin, May 2005, pp.
83 ff.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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