Chan, Bob Y.; Khoo, Terence - In: Review of Industrial Organization 13 (1998) 6, pp. 651-667
This paper analyzes the deposit-taking market in Hong Kong prior to the deregulation of interest rates in 1994. We argue that banking regulations, in the forms of branching restrictions and interest-rate ceilings, had created a monopsonistic market for short-term bank deposits. As a result,...