Several economic factors have caused banking institutions to merge over the past several years.
Banks often are able to operate more cost effectively by increasing their size.
The costs of many functions don't double when the scale of operation doubles. As a result, mergers are one way to keep costs and prices down. Banks and their customers have become increasingly accustomed to the advantages of new and expensive technologies. Many of these technologies are too expensive unless costs can be spread over a large number of customers. Mergers are often necessary to allow banks to introduce and maintain the technologies customers increasingly demand.