The Effects on Competition of Market Dominance, the Case of T-Bills in Albania

Pajtim Melani, Rezana Konomi

Abstract


It is generally accepted that competition in the banking system, although is measured by the same indicators as in other markets, should be considered with caution due to inversability that has with that financial stability and due to the chain effect that has to the real economy. But this "excessive" caution for banks should not establish conditions for the future to abuse market position by infringing the principles of free competition and the rules of ethical conduct for competitors and customers. Due to the past historical dominance of the former Savings Bank, inherited a healthy portfolio of banking system deposits, with more than 40% of the market, a theory accepted limit level to dominate the market. Modern competition legislation does not prohibit per se having a dominant position, but prohibits the abuse of that position and the hypothesis of this paper, will be exactly linked with abuse (or not) to Raiffeisen Bank dominant position in the treasury bond market in Albania.

DOI: 10.5901/mjss.2013.v4n9p754


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This work is licensed under Creative Commons Attribution 3.0 License.

Mediterranean Journal of Social Sciences ISSN 2039-9340(Print) ISSN 2039-2117(Online)

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