We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
The economics of retail banking--an empirical analysis of the UK market for personal current accounts.
- Authors
Gondat-Larralde, Céline; Nier, Erlend
- Abstract
Understanding the economics of retail banking is important for the Bank of England in carrying out both its monetary stability and its financial stability function. In this article, we study the dynamics of the UK market for personal current accounts between 1996 and 2001. Analyzing the evolution of banks’ market shares and their pricing strategies, two questions are addressed: (i) Do bank market shares respond to price differentials? (ii) If not, why not? Our results point to customer switching costs as a key determinant of the nature of competition in the market for personal current accounts during the 1996-2001 period. They are thus broadly supportive of a number of initiatives that have since been undertaken to reduce such costs.
- Subjects
UNITED Kingdom; BANK of England; BANKING industry; RETAIL banking; MONETARY policy; MARKET share; BANK accounts; PRICES
- Publication
Bank of England Quarterly Bulletin, 2004, Vol 44, Issue 2, p153
- ISSN
0005-5166
- Publication type
Article