Bigger banks mean bigger risks: study warns against banking sector expansion
The article examines the size advantages of banks in Europe from 2002 to 2011. It finds that bigger banks have cost advantages, especially during crises. Banks focusing on relationships benefit more from size than those focusing on transactions. The quality of technology and market concentration also affect bank size benefits. The study suggests that limiting bank size and scope could increase costs, so other methods may be better for ensuring financial stability.