| Summary: | The flurry of merger activity sweeping across the U.S. financial services sector is
drastically restructuring its retail banking segment. The integration and streamlining of
operations has highlighted the role deposit market shares play in the merger mix. Firstly,
we investigate whether banks successfully retain their deposits, post-merger; secondly,
we investigate the effects of pre-merger institutional attributes on deposit retention. The
results to the first question appear to confirm that banks retain their deposits. The findings
of the second question indicate that the nature of competition in the market, the
magnitude of retail banking focus, institution age, market and institutional deposit growth
all have significant effects on deposit retention.
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