... if t < t₁. Moreover, it is being commonly said that branch banking stabilizes the banking systems by reducing their exposure to local economic shocks, as branching enables the banks to diversify their loans as well as deposits over a wider geographical area or customer base...

... economies of scale. This fact is also supported by Laeven et al. (2014) investigation. Therefore, the central part of the concentration-stability hypothesis submits that bank size has a positive impact on bank stability. the restrictions on larger banks under capital surcharges...