Recent evidence suggests that economies of scale may exist for banks up to the US$10 billion to US$25 billion range.

Question

Quizplus · Accepted Answer

Recent studies have shown that banks can benefit from economies of scale up to a size range of US$10 billion to US$25 billion, after which the benefits start to decrease or disappear. This is due to factors such as increased regulatory costs and decreased market power.

Recent Evidence Suggests That Economies of Scale May Exist for Banks