6 - Banking Homework: Unit 6 :Conceptual Problems .For many...

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Banking Homework: Unit 6 Conceptual Problems : For many years, you have been using your local small-town bank . And one day you hear that the bank is about to be purchased by Bank of America. From your vantage point as a retail bank customer, what are the costs and benefits of such a merger ? I would think that the merger will do more benefit than harm, since the bank of America is a world renowned global bank, I would think I am safer and I will get much better support from such a well-respected efficient bank . Describe the economies of scope that large financial holding companies hope to realize. Do you believe they will be successful ? The companies hope to reduce costs by offering customers a wide range of services. Enabling customers to complete all of their financial activities with one institution should help to reduce costs, but the people who run the large companies are probably more interested with increasing the size of their institutions .
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6 - Banking Homework: Unit 6 :Conceptual Problems .For many...

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