Bank Behavior in Oligopoly, Bank- Clients and Monetary Policy
AbstractThis paper investigates the impact of monetary policy on the optimal bank behavior under oligopolistic conditions. In addition, we attempt to extend this analysis in the sphere of bank-clients behavior.We concentrate on the way the minimum reserve requirements of commercial banks influence the optimal bank behavior in oligopoly. In particular, we are interested in the influence of this instrument of monetary policy on the interest rate spread. For this reason, we formulate a two-stage Cournot game with scope economies.We conclude that the sign of each change depends on the type of scope economies. Finally, treating an overlapping generation model as a guiding principle, we show that the minimum reserve requirements of commercial banks have an impact on the depositors’ and borrowers’ two periods’ optimal level of consumption.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 47483.
Date of creation: 30 Jun 2013
Date of revision:
Bank behavior; Scope economics; Monetary policy;
Find related papers by JEL classification:
- D4 - Microeconomics - - Market Structure and Pricing
- E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
- E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-08-05 (All new papers)
- NEP-BAN-2013-08-05 (Banking)
- NEP-CBA-2013-08-05 (Central Banking)
- NEP-MON-2013-08-05 (Monetary Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Toolsema-Veldman, Linda A. & Schoonbeek, Lambert, 1999.
"Bank behavior and the interbank rate in an oligopolistic market,"
CCSO Working Papers, University of Groningen, CCSO Centre for Economic Research
199909, University of Groningen, CCSO Centre for Economic Research.
- Toolsema, Linda A. & Schoonbeek, L., 1999. "Bank behavior and the interbank rate in an oligopolistic market," Research Report 99E49, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
- Shota Yamazaki & Hiroaki Miyamoto, 2004. "A Note on Bank Behavior and Monetary Policies in an Oligopolistic Market," Industrial Organization, EconWPA 0408003, EconWPA.
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