Advanced Search
MyIDEAS: Login

The Pricing of Interbank Payment Services in a Changing Competitive Environment

Contents:

Author Info

  • Weinberg, John-A

    (Federal Reserve Bank of Richmond)

Registered author(s):

    Abstract

    Interbank payment arrangements create a tension between competition and cooperation among participating banks. By providing payment services to a rival's depositors, a bank enhances the value of the rival's deposit services. Hence, the pricing of these interbank services will have an effect on the competition between banks for depositors. This paper discusses the pricing of interbank payment services in an imperfectly competitive banking market. The strategic effects of interbank prices are very different in a segmented market in which there is no direct competition for depositors. Public policy often is more accepting of cooperation among banks in setting interbank prices than in setting the prices of "final goods" like deposits. While such a policy stance makes sense in a setting of segmented markets, the case of direct competition in deposit markets is more complicated. Here, cooperation in the setting of interbank prices could dampen competition in the markets in which banks compete directly.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.imes.boj.or.jp/research/papers/english/me19-3-3.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by Institute for Monetary and Economic Studies, Bank of Japan in its journal Monetary and Economic Studies.

    Volume (Year): 19 (2001)
    Issue (Month): 3 (November)
    Pages: 97-111

    as in new window
    Handle: RePEc:ime:imemes:v:19:y:2001:i:3:p:97-111

    Contact details of provider:
    Postal: 2-1-1 Nihonbashi, Hongoku-cho, Chuo-ku, Tokyo 103
    Phone: +81-3-3279-111
    Fax: +81-3-3510-1265
    Email:
    Web page: http://www.imes.boj.or.jp/
    More information through EDIRC

    Related research

    Keywords:

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ime:imemes:v:19:y:2001:i:3:p:97-111

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kinken).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.