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Firstly, bank mergers have the inherent ability to raise antitrust concerns, which must be solved adequately before being approved. As bank mergers can adjust banking market structure and because market structure effects banking competition and hence the price of banking services to customers, all bank merger applications are scrutinized by banking regulators. In addition, the Department of Justice has the authority to question any mergers that are thought harmful to competition. Research suggests that the markets for many banking products and services remain local in nature, in spite of the advances in information technology and electronic commerce (Rhoades 2000). Payment Protection Insurance Indeed, the recent market-expansion mega mergers themselves are testimony to the importance these large banking organizations attach to maintaining a local market presence. Thus, the current administrative practices of defining banking markets locally in appraising the effects of proposed mergers on competition seem justified. When a proposed merger is found to result in an unacceptably high level of concentration in local banking markets, divestitures in those markets are often required as a condition for regulatory approval in order to maintain meaningful competition. Payment Protection Insurance Looking at western states,�Laderman�(2003) found that changes in concentration of local banking markets were quite moderate despite the large degree of consolidation in banking over the past two decades. In addition to concerns about banking centralized effects on local market competition, existing banking law also limits banking concentration at the national level. Perhaps impelled by the fear of concentration of banking power, the�Riegle-Neal Act forbids any merger or acquisition that results in a combined banking organization controlling more than 10% of the total amount of deposits of insured depository institutions in the�U.S. Payment Protection Insurance
