The Federal Reserve Bank of New York works to promote sound and well-functioning financial systems and markets through its provision of industry and payment services, advancement of infrastructure reform in key markets and training and educational support to international institutions.
Regional & Community Outreach connects the Bank to Main Street via structured dialogues and two-way conversations on small business, mortgages, and household credit.
Economic Education improves public knowledge about the Federal Reserve System, monetary policy implementation, and promoting financial stability through the Museum and programs for K-16 students and educators, and the community.
Industry data for 1990-99 suggest that the increased market share of the largest bank holding companies is attributable almost entirely to external growth through mergers and acquisitions, rather than internal growth of the holding companies subsidiaries.
Although the largest bank holding companies control a growing market share, these institutions actually grew more slowly than smaller institutions after one accounts for the effects of consolidation.
As the industry evolves from a fractured banking system, large bank holding companies appear to be choosing a more consolidated, and likely more efficient, industry structure.
Kevin J. Stiroh is an economist and Jennifer P. Poole is an assistant financial analyst at the New York Fed.