Disadvantages of bank mergers  As long as barriers keep out international competitors, mergers may reduce competition and may hurt consumers. Bigger banks are not necessarily safer than smaller ones.
In a report published recently by the Bank for International Settlements, it is stated the current restructuring of the banking industry could cause constraints as competitive pressures interact with stubborn cost structures and heightened incentives for risk taking. This trend is especially dangerous since bigger banks are more likely considered to be “too big to fail”.