Working Paper
Assessing the Common Ownership Hypothesis in the US Banking Industry
Grundl, Serafin J.; Gramlich, Jacob P. (2024-07-12)
The common ownership hypothesis (COH) states that firms with common shareholders, primarily large asset managers, compete less aggressively with each other. The U.S. banking industry is well suited to assess the common ownership hypothesis, because thousands of private banks without common ownership (CO) compete with hundreds of public banks with high and increasing levels of CO. This paper assesses the COH in the banking industry using more comprehensive ownership data than previous studies. In simple comparisons of raw deposit rate averages we document that the deposit rates of public banks ...
Finance and Economics Discussion Series , Paper 2024-022r1

Working Paper
Assessing the Common Ownership Hypothesis in the US Banking Industry
Gramlich, Jacob P.; Grundl, Serafin J. (2024-04-19)
The U.S. banking industry is well suited to assess the common ownership hypothesis (COH), because thousands of private banks without common ownership (CO) compete with hundreds of public banks with high and increasing levels of CO. This paper assesses the COH in the banking industry using more comprehensive ownership data than previous studies. In simple comparisons of raw deposit rate averages we document that (i) private banks do offer substantially more attractive deposit rates than public banks, but (ii) the deposit rates of public banks are similar in markets without CO where a single ...
Finance and Economics Discussion Series , Paper 2024-022