This study examines the firm size distribution of US banks and credit unions. A truncated lognormal distribution describes the size distribution, measured using assets data, of a large population of small, community-based commercial banks. The size distribution of a smaller but increasingly dominant cohort of large banks, which operate a high-volume low-cost retail banking model, exhibits power-law behaviour. There is a progressive increase in skewness over time, and Zipf’s Law is rejected as a descriptor of the size distribution in the upper tail. By contrast, the asset size distribution of the population of credit unions conforms closely to the lognormal distribution.
|Number of pages||18|
|Journal||International Journal of the Economics of Business|
|Publication status||Published - Feb 2014|
Goddard, J., Liu, H., McKillop, D., & Wilson, J. O. S. (2014). The Size Distribution of US Banks and Credit Unions. International Journal of the Economics of Business , 21(1), 139-156. https://doi.org/10.1080/13571516.2013.835970