Bank consolidation is desirable because
A) small banks with little capital are eliminated.
B) banks are more diversified.
C) both of the above.
D) neither of the above.

Question

Quizplus · Accepted Answer

Bank consolidation can be desirable because it often leads to the elimination of smaller banks that might lack sufficient capital to be competitive or safe in a volatile market. Additionally, consolidation can lead to banks becoming more diversified, as they merge or acquire other institutions with different strengths, customer bases, or geographic locations, thereby spreading out their risks and opportunities.

Bank Consolidation Is Desirable Because