ENGLISH

Competition in the Financial Sector: Overview of Competition Policies

By Stijn Claessens

Book information

Publisher
International Monetary Fund
Year
2009
ISBN
9781451916287, 9781451871937
LCC
HF1414 -- .C53 2009eb
Language
english
Format
EPUB
Filesize
756 kB (773753 bytes)
Series
IMF Working Papers
Edition
1
Pages
37\0
Time added
2023-08-25 23:51:56
Competition. ; Finance.

Description

As in other sectors, competition in finance matters for allocative, productive and dynamic efficiency. Theory suggests, however, that unfettered competition is not first best given the special features of finance. I review these analytics and describe how to assess the degree of competition in markets for financial services. Existing research shows that the degree of competition greatly varies across markets, largely driven by barriers to entry and exit. I argue that changes in financial services industries require updated competition policies and institutional arrangements, but that practices still fall short. Furthermore, I show that developing countries face some specific competition challenges.

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