Competition in bank-provided payment services
AbstractBanks supply payment services that underpin the smooth operation of the economy. To ensure an efficient payment system, it is important to maintain competition among payment service providers but data available to gauge the degree of competition are quite limited. We propose and implement a frontierbased method to assess relative competition in bank-provided payment services. Billion dollar banks account for around ninety percent of assets in the US and those with around to billion in assets turn out to be both the most and the least competitive in payment services, not the very largest banks. JEL Classification: G21 L80 L00
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Bibliographic InfoPaper provided by European Central Bank in its series Working Paper Series with number 1539.
Date of creation: Apr 2013
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Other versions of this item:
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- L80 - Industrial Organization - - Industry Studies: Services - - - General
- L00 - Industrial Organization - - General - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-08-23 (All new papers)
- NEP-BAN-2013-08-23 (Banking)
- NEP-COM-2013-08-23 (Industrial Competition)
- NEP-EFF-2013-08-23 (Efficiency & Productivity)
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