Financial intermediation services and competition analyses: Review and paths forward for improvement

Allen N. Berger and Arnoud W.A. Boot

Journal of Financial Intermediation, 2024, vol. 57, issue C

Abstract: Financial intermediation has distinct value from transforming financial claims to create liquidity and mitigate risks. However, research and policy competition analyses often neglect this value or minimally account for it. We review findings to better incorporate this value. We suggest shifting the mix of individual services analyzed to better represent the distinct value, focusing more on topics closely aligned with the distinct value concept beyond individual services, and accounting for the multimarket nature of financial intermediation. We recommend attention on future competition with digital FinTech, BigTech, and DeFi firms and policies to best preserve the distinct value of financial intermediation.

Keywords: Competition; Financial intermediation; Banks; FinTech; BigTech; DeFi (search for similar items in EconPapers)
JEL-codes: B00 D40 G21 G28 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jfinin:v:57:y:2024:i:c:s1042957324000019

DOI: 10.1016/j.jfi.2024.101072

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