Chapter 11, Problem 15Q

To determine

Why is there a higher percentage of banks with less than $25 million of assets being commercial banks than savings, loans and mutual savings banks?

Concept Introduction:

Before de-regulation, the largest participant in the industry was banks which were responsible for deposits and borrowing. After the consolidation in the 1980s, several banks underwent mergers and the share of these banks collectively increased from 50 percent to about 70 percent. This was done at the cost of several small banks that had a less competitive asset base and reach.