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Non-par banking: competition and monopoly in markets for payments services

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  • Edward J. Stevens

Abstract

Once the Federal Reserve Banks started providing par interbank funds transfers, their check collection service was unnecessary to bring nationwide par check collection in competitive banking markets. The survival of non-par banks probably reflected the absence of competition in the markets where they operated. The empirical evidence is consistent with this conclusion, since non-par banks typically were monopolists in isolated rural markets for banking services.

Suggested Citation

  • Edward J. Stevens, 1998. "Non-par banking: competition and monopoly in markets for payments services," Working Papers (Old Series) 9817, Federal Reserve Bank of Cleveland.
    • Handle: RePEc:fip:fedcwp:9817
    DOI: 10.26509/frbc-wp-199817
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    References listed on IDEAS

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    1. R. Alton Gilbert, 1998. "Did the Fed's founding improve the efficiency of the U.S. payments system?," Review, Federal Reserve Bank of St. Louis, issue May, pages 121-142.
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    Cited by:

    1. Khiaonarong, Tanai, 2003. "Payment systems efficiency, policy approaches, and the role of the central bank," Bank of Finland Research Discussion Papers 1/2003, Bank of Finland.
    2. repec:zbw:bofrdp:2003_001 is not listed on IDEAS
    3. Tanai Khiaonarong, 2004. "Payment systems efficiency, policy approaches, and the role of the central bank," Finance 0405004, University Library of Munich, Germany.
    4. Khiaonarong, Tanai, 2003. "Payment systems efficiency, policy approaches, and the role of the central bank," Research Discussion Papers 1/2003, Bank of Finland.
    5. Jeffrey M. Lacker & Jeffrey D. Walker & John A. Weinberg, 1999. "The Fed's entry into check clearing reconsidered," Economic Quarterly, Federal Reserve Bank of Richmond, issue Spr, pages 1-32.
    6. Jeffrey M. Lacker & John A. Weinberg, 1998. "Can the Fed be a payment system innovator?," Economic Quarterly, Federal Reserve Bank of Richmond, issue Spr, pages 1-25.

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    More about this item

    Keywords

    Payment systems; Bank competition; Board of Governors of the Federal Reserve System (U.S.);
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