Competition and Scope of Activities in Financial Services
This article analyzes the costs and benefits of different degrees of competition and different configurations of permissible activities in the financial sector and discusses the related implications for regulation and supervision. Theory and experi...
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| Format: | Journal Article |
| Language: | English en_US |
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Washington, DC: World Bank
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2001/12/17580168/competition-scope-activities-financial-services http://hdl.handle.net/10986/17134 |
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okr-10986-171342021-04-23T14:03:29Z Competition and Scope of Activities in Financial Services Claessens, Stijn Klingebiel, Daniela ALTERNATIVE FRAMEWORKS BANKING SYSTEM COMPETITION CONSUMER CREDIT DISTRIBUTION FINANCIAL CRISES MITIGATION FINANCIAL SERVICES MARKETS FINANCING ACCESS This article analyzes the costs and benefits of different degrees of competition and different configurations of permissible activities in the financial sector and discusses the related implications for regulation and supervision. Theory and experience demonstrate the importance of competition for efficiency and confirm that a competitive environment requires a contestable system meaning one that is open to competition-but not necessarily a large number of institutions. A competitive banking system can improve the distribution of consumer credit, enhance the corporate sector's access to financing, and mitigate the risks of financial crises. In an open market, in which services and products are provided in response to market signals, financial institutions respond by offering a wider scope of financial services. The optimal institutional design for supervisory functions is less obvious. This article reviews alternative frameworks for financial services markets from an economic perspective using experiences in several countries as a guide. Authors focus first on the role of competition in the financial sector and the tradeoffs between competition on the one hand and stability and innovation on the other. Authors next examine alternative structures of financial services dictated in many countries. 2014-02-20T23:27:22Z 2014-02-20T23:27:22Z 2001-04 Journal Article http://documents.worldbank.org/curated/en/2001/12/17580168/competition-scope-activities-financial-services World Bank Research Observer http://hdl.handle.net/10986/17134 English en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ World Bank Washington, DC: World Bank Publications & Research :: Journal Article Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ALTERNATIVE FRAMEWORKS BANKING SYSTEM COMPETITION CONSUMER CREDIT DISTRIBUTION FINANCIAL CRISES MITIGATION FINANCIAL SERVICES MARKETS FINANCING ACCESS |
| spellingShingle |
ALTERNATIVE FRAMEWORKS BANKING SYSTEM COMPETITION CONSUMER CREDIT DISTRIBUTION FINANCIAL CRISES MITIGATION FINANCIAL SERVICES MARKETS FINANCING ACCESS Claessens, Stijn Klingebiel, Daniela Competition and Scope of Activities in Financial Services |
| description |
This article analyzes the costs and
benefits of different degrees of competition and different
configurations of permissible activities in the financial
sector and discusses the related implications for regulation
and supervision. Theory and experience demonstrate the
importance of competition for efficiency and confirm that a
competitive environment requires a contestable system
meaning one that is open to competition-but not necessarily
a large number of institutions. A competitive banking system
can improve the distribution of consumer credit, enhance the
corporate sector's access to financing, and mitigate
the risks of financial crises. In an open market, in which
services and products are provided in response to market
signals, financial institutions respond by offering a wider
scope of financial services. The optimal institutional
design for supervisory functions is less obvious. This
article reviews alternative frameworks for financial
services markets from an economic perspective using
experiences in several countries as a guide. Authors focus
first on the role of competition in the financial sector and
the tradeoffs between competition on the one hand and
stability and innovation on the other. Authors next examine
alternative structures of financial services dictated in
many countries. |
| format |
Journal Article |
| author |
Claessens, Stijn Klingebiel, Daniela |
| author_facet |
Claessens, Stijn Klingebiel, Daniela |
| author_sort |
Claessens, Stijn |
| title |
Competition and Scope of Activities in Financial Services |
| title_short |
Competition and Scope of Activities in Financial Services |
| title_full |
Competition and Scope of Activities in Financial Services |
| title_fullStr |
Competition and Scope of Activities in Financial Services |
| title_full_unstemmed |
Competition and Scope of Activities in Financial Services |
| title_sort |
competition and scope of activities in financial services |
| publisher |
Washington, DC: World Bank |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2001/12/17580168/competition-scope-activities-financial-services http://hdl.handle.net/10986/17134 |
| _version_ |
1764433459716030464 |