Important changes in U.S. banking regulation that took place during the nineties have inspired concern about the long-run size distribution of banks. The asset-size distribution of commercial banks is skewed to the right, and there has been a pronounced increase in asset concentration in the last 20 years. A detailed review of these stylized facts is provided and theoretical explanations for the coexistence of small and large banks in equilibrium are discussed.
Amanda L. Kramer
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