Competition and regulation in the Finnish ATM industry

Tuomas Markkula and Tuomas Takalo

No 8/2021, BoF Economics Review from Bank of Finland

Abstract: Declining ATM numbers pose a challenge for competition policy and financial regulatory authorities. In this report we review the Finnish experience of regulating the competition in the ATM industry. To analyze the Finnish developments we extend the model of Kopsakangas-Savolainen and Takalo (2014), and draw on the existing literature and benchmarks from the selected other countries. We document how changes in the ATM market regulation and market structure has decoupled the ATM network size from the declining cash use in Finland. The Finnish regulation has almost exclusively focused on foreign fees, while in general it would be better to regulate interchange fees. If the optimal fee regulation is not feasible, the authorities could also consider quantity regulation.

Keywords: ATM industry; cash; competition policy; optimal regulation; retail payments (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-ban, nep-cba, nep-com, nep-law, nep-mon, nep-pay and nep-reg
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:bofecr:82021

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