There are some promising lines of inquiry begun by academics, including funding-cost advantages enjoyed by large firms; possible diseconomies of scope resulting from firm  2  BIS central bankers’ speeches  complexity; and the effect of market concentration and firm size on intra- and inter-firm diversification.
As I noted earlier, there has also been a considerable amount of work on scale economies in commercial banking.2 However, more needs to be done on these and other subjects. Indeed, from a policy perspective, the value of some of the scholarship done to date may be limited.