2. How does the author define a large bank merger? Why did the number of these mergers increase beginning in 1997? In what other ways have large bank mergers changed in recent years? Due to new laws, it allow mergers between larger banks this allow banks to increase their potential services that they provide. Due to banks enlarging in services it allows them to have more competition. 3. Distinguish between economies of scale and economies of scope in banking. What opportunities have regulatory changes in the 1990s created for banks to pursue these economies? 4. How do mergers enhance banks? abilities to diversify risk? 5. What does the author conclude from the evidence on stock market reactions to bank merger announcements? 6. Have mergers reduced competition in banking at the local level? How about at the national level? How does the Riegle-Neal Act restrain the size of banks