Anticompetitive Impacts of Expanded Bank Service Lines.
Purchase Print Copy
| Format | List Price | Price | |
|---|---|---|---|
| Add to Cart | Paperback26 pages | $20.00 | $16.00 20% Web Discount |
A discussion of potential problems inherent in the practice of offering numerous and diverse services or products in banking; possible adverse impacts from wider service lines; the relationships of these impacts to market structure conditions; and the possible efficacy of antitrust enforcement. Reciprocal arrangements present a serious problem. This practice promotes market power, heightened by credit-rationing, and, despite current legal remedies against it, is hard to detect. Distortions in the credit mechanism appear somewhat easier to prevent by regulating the bank-holding companies. Banking service expansion can affect competitiveness of both banking and nonbanking markets, if a significant number of banks in a market expand. Solutions lie in regulation of corporate forms and expanded services; antitrust authorities must make an important contribution. Even so, some increased competitive problems will remain as the price for advantages of wider banking service. 26 pp. (SM)
This report is part of the RAND Corporation Paper series. The paper was a product of the RAND Corporation from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review.
This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.
The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.