Publication:
Competition in the Financial Sector

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dc.contributor.authorClaessens, Stijn
dc.date.accessioned2012-03-30T07:12:34Z
dc.date.available2012-03-30T07:12:34Z
dc.date.issued2009-03-30
dc.description.abstractCompetition in the financial sector, as in other sectors, matters for allocative, productive, and dynamic efficiency. Theory suggests, however, that unfettered competition is not necessarily best given the special features of financial services. The author discusses these analytical complications before reviewing how to assess competition in the financial sector and its determinants. It is shown that competitiveness varies greatly across countries, in perhaps surprising ways, and that it is not driven by financial system concentration. Rather, systems with greater foreign entry and fewer entry and activity restrictions tend to be more competitive, confirming that contestability—the lack of barriers to entry and exit—determines effective competition. The author then analyzes how competition policy in the financial sector has generally been conducted and how changes in competition in the financial services industries should affect competition policy going forward. In part based on comparison with other industries, the author provides some suggestions on how competition policy in the financial sector could be better approached as well as what institutional arrangements best fit a modern view of competition policy in the sector. The specific competition challenges for developing countries is also highlighted. The author concludes that practices today fall far short of the need for better competition policy in the financial sector.en
dc.identifier.citationWorld Bank Research Observer
dc.identifier.doi10.1596/4425
dc.identifier.issn1564-6971
dc.identifier.urihttps://hdl.handle.net/10986/4425
dc.publisherWorld Bank
dc.relation.ispartofseriesWorld Bank Research Observer
dc.rightsCC BY-NC-ND 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/igo/
dc.subjectbarriers to entry
dc.subjectcompetition policies
dc.subjectcompetition policy
dc.subjectderegulation
dc.subjectdeveloping countries
dc.subjectfinancial contracts
dc.subjectfinancial markets
dc.subjectfinancial products
dc.subjectfinancial sector
dc.subjectfinancial sector stability
dc.subjectfinancial services
dc.subjectfinancial services industries
dc.subjectfinancial stability
dc.subjectfinancial system
dc.subjectfinancial systems
dc.subjectglobal financial markets
dc.subjectglobalization
dc.subjectliberalization
dc.subjectliquidity
dc.subjectstock exchanges
dc.titleCompetition in the Financial Sectoren
dc.title.alternativeOverview of Competition Policiesen
dc.typeJournal Articleen
dc.typeArticle de journalfr
dc.typeArtículo de revistaes
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.date.doiregistration2025-05-06T10:56:02.890217Z
okr.doctypeJournal Article
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeEducation
okr.globalpracticeTransport and ICT
okr.globalpracticeSocial Protection and Labor
okr.globalpracticeEnvironment and Natural Resources
okr.globalpracticeFinance and Markets
okr.globalpracticeFinance and Markets
okr.globalpracticeTrade and Competitiveness
okr.identifier.report1
okr.language.supporteden
okr.pagenumber83
okr.pagenumber118
okr.pdfurlwbro_24_1_83.pdfen
okr.peerreviewAcademic Peer Review
okr.region.countryBrazil
okr.region.countryMexico
okr.region.countryColombia
okr.region.countryBolivia
okr.region.geographicalLatin America
okr.topicLabor and Social Protections
okr.topicEnvironment
okr.topicPrivate Sector Development::Emerging Markets
okr.topicBanks and Banking Reform
okr.topicEconomic Theory and Research
okr.topicMacroeconomics and Economic Growth::Markets and Market Access
okr.topicSocial Protections and Labor::Labor Policies
okr.topicFinance and Financial Sector Development::Access to Finance
okr.topicInformation and Communication Technologies::ICT Policy and Strategies
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicEducation::Knowledge for Development
okr.topicEnvironmental Economics and Policies
okr.volume24
relation.isJournalIssueOfPublication2efcb822-ee14-4b59-8ebb-70c087396143
relation.isJournalIssueOfPublication.latestForDiscovery2efcb822-ee14-4b59-8ebb-70c087396143
relation.isJournalOfPublication9e5fbe82-492f-4142-8378-17d50245d9de
relation.isJournalVolumeOfPublication603f7f9c-f29b-49b7-b70a-11c50de1b67b
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