Wall Street has a hard time believing that merger-related cost savings can overcome earnings dilution. But a quick fix may come from changing the way banks measure efficiency.

The near-term benefits of mergers are typically evaluated on the basis of absolute reductions in recurring noninterest expenses, such as wages and rent.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.