Cozy Banking Oligopoly in the Australian Finance Market

Running Head: Economics
0
ECO501
9/4/2019

Economics
1
Contents
Introduction......................................................................................................................................2
Analysis...........................................................................................................................................3
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

Economics
2
Introduction
The financial scheme of the Australia market is very dynamic. In this essay, the
discussion will be done in regards to the organization of the finance market of Australia and the
cozy banking oligopoly. Oligopoly market structure is the structure where the market is highly
concentrated and few firms are dominated. In the oligopoly market structure the firms have the
interdependence on the different firms for taking the good decisions. The competition in the
oligopoly market is not much as there are very few firms who are operating in the market. The
large finance companies enjoy the economies of scale as the competition is less and they have
the dominant power (KIM and Knittel, 2016). The big finance companies have control over the
specialized units which lead to creating many problems in the Australian market. In this essay
with the help of the diagrams and illustrative examples the Australian finance sector will be
explained. The statement was given by the ACCC Chairmen, ROD SIMS will also be elaborated
and the actions taken by him to overcome the problem will also be analyzed.