Banking monopoly
Category: Concept of the Bank and the Banking System
Monopoly (Mono … + Poleo – sale) is owned by one person, partnership or the State and has the right to mine, produce and sell certain products.
There is a popular theory that divides the market according to the degree of monopolization in the 5 main types: the monopoly, partial monopoly, oligopoly, partial oligopoly and competition. Appropriate degree of monopolization can manifest itself as part of the seller, and from the recipient. Since the form data is not isolated from each other, it is generally shared by 25 different combinations. Partial monopoly occurs if the market does not favor one vendor and the purchaser, and many of them, but one of them is so ahead of its productive and consuming power of other market players that the other guided by him. This kind of monopoly can not ignore the position of other market participants.
Oligopoly (gr. oligos — few, little) as a kind of monopoly arises when the right to produce, manufacture or sale of a product belongs to a small number of participants, is a kind of collective monopoly that seeks to unite for a joint acquisition by the market (in the form of a kind of cartel). Partial oligopoly is an intermediate step between competition and oligopoly.
From we considered banking activities clearly visible position that the implementation of certain banking operations is not a monopoly of the only bank that is something the bank’s monopoly piece, which is not allowed to others. Of individual operations of commercial banks virtually none. Only the central bank has a monopoly: no one else, does not release the cash in circulation, as a whole does not perform operations on the so-called back office (production, storage and withdrawal of cash from circulation). In modern banking monopoly:
— this right only to the bank to perform simultaneously three banking operations (deposits, loans, payment means);
— is to establish certain limits for other entities engaged in banking operations….