153k views
2 votes
An industry with a large number of small firms is usually thought to be highly competitive. Is that supposition true of the banking industry?

User Shadowman
by
4.8k points

1 Answer

2 votes

Answer: Not Anymore

Step-by-step explanation:

In the past, it could be said that the Banking industry in the United States was more competitive as there were many more smaller banks which operated in a certain geographical area.

As time moved forward towards the present however, what we have seen is smaller banks being taken over by larger banks which want to expand operations or as a result of the smaller banks failing.

The banking sector still has a lot of small banks but is effectively controlled by a few big banks and so is not as competitive as before.

User Kastriot Dreshaj
by
4.3k points