Do Multimarket Banks Set Uniform Loan Rates Across Markets?
Working Paper No. 2004-16. 15 pages. Recent work has suggested that multimarket banks tend to offer the same deposit interest rates in all local markets served, with implications for a broader geographic market definition. This note examines comparable evidence on the consumer loan side, finding that while some banks may offer the same or similar loan rates across geographic markets – especially within the same state -- this does not seem to apply more generally.