interstate banks' consolidation and group wide capital and liquidity management to foster financial stability and deepen market integration

This paper investigates the dynamics and implications of interstate bank consolidation, a critical trend in the financial sector. The analysis explores regulatory frameworks, market forces, and economic consequences shaping the consolidation process. Key drivers include technological advancements, economies of scale, and regulatory reforms that have facilitated cross-border mergers and acquisitions within the banking industry. The study also examines the implications for competition, consumer choice, and financial stability, providing insights into the broader economic and policy context. Findings suggest that while consolidation enhances efficiency and global competitiveness, it raises concerns about market concentration and systemic risks. Recommendations for policymakers emphasize balancing growth with safeguards to ensure equitable and stable financial markets.