Author(s)

Carlos Encinas-Ferrer

Universidad del Valle de Atemajac, Campus León, León, México.

The dual figure of the oligopsonic-oligopolistic enterprise is mainly applied to commercial intermediaries. This dual personality has a double negative impact on markets of goods: On the one hand, as an oligopsonic buyer, it reduces demand to producers by lowering the prices they would sell to be in a competitive market, and, on the other hand, as oligopolistic sellers, reduce supply, thereby raising prices to final consumers. In the case of the banking sector, the lack of competition that this dual figure implies means that the gap between the passive interest rates paid to the savers and the active rates they charge for lending the same savings are very high and often lead to negative passive rates that discourage savings and active rates so high that they discourage productive investment and consumption.

Oligopsony, Oligopoly, Oligopsony-Oligopoly, Imperfect Competition, Banking System

Encinas-Ferrer, C. (2017) The Mexican Banking System and Its’ Oligopsonic-Oligopolistic Structure. Modern Economy, 8, 378-385. doi: 10.4236/me.2017.83027.