In this paper is analyzed how the Riksbank's system for payment among banks and customers works. The Riksbank, according to Sveriges Riksbank Act maintain price stability which apply through an inflation target of two per cent. In addition to this, the Riksbank has been given the task of providing a secure and efficient payment. The Riksbank, fosters stability in the entire Swedish financial system. It provides banknotes and coins and an electronic settlement system for payments between banks, that is called RIX. RIX system has a great effect on market power and consequently a great return on equity for the Swedish financial institutions. RIX system is the wheel of Sweden's financial infrastructure and cirqulates every day 500 billion Swedish
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Participants are most dissatisfied with price way back, there is also a large spread among the responses that unlike the responses of the other issues have a fairly even split between 2 and 5 which shows that some participants are very satisfied with the pricing that gives sharply falling unit costs and thus benefit the larger participants while others, probably less players are unhappy with pricing The question of whether the RIX system treats all equitably may also low score which indicates that the system provides certain advantages institutes, on this issue, it is also a division where many institutions put 5 in the ratings while many instead puts 3 which also shows to a group of participants who feel unfairly treated while another group probably will be better treated are not experiencing the problem. In addition, participants are also less satisfied with how the RIX system handled the application process, which also shows that there are difficulties in obtaining entry into the RIX system causing barriers to entry in the market. To this should be added that only those institutions that applied for and been granted access to the RIX system participated in investigation, the agency refused has therefore not participated. When asked about how well the RIX system become influenced by suggestions and opinions so is part of the …show more content…
Although the results of this study should be interpreted with caution, this indicates that the pricing favors some participants more than others. If this is combined with the analysis of the price template that applies to RIX system,(With falling unit costs) then it is very likely that the smaller players, they are less satisfied with the investigation. Uncertainty about the size of the prism Allen's real impact means, however, that this should be interpreted with great caution. This shows that less than actors who are outside the RIX system in all probability would benefit even less of the cost structure in the RIX system. Overall, the qualitative empirical data and empirical data regarding the Riksbank's own study on the RIX system has a framing which could well penalize competition in the lending market, which would contribute to a continued oligopoly. This should then lead to an increase in market power of the incumbents. The probable economic effect of this is that those with large market power can charge a higher price in relative to their costs than others causing economic windfall profits for these and therefore a higher return on equity. The quantitative empirical data have also shown that a RIX membership has a statistically significantly associated with
Participants are most dissatisfied with price way back, there is also a large spread among the responses that unlike the responses of the other issues have a fairly even split between 2 and 5 which shows that some participants are very satisfied with the pricing that gives sharply falling unit costs and thus benefit the larger participants while others, probably less players are unhappy with pricing The question of whether the RIX system treats all equitably may also low score which indicates that the system provides certain advantages institutes, on this issue, it is also a division where many institutions put 5 in the ratings while many instead puts 3 which also shows to a group of participants who feel unfairly treated while another group probably will be better treated are not experiencing the problem. In addition, participants are also less satisfied with how the RIX system handled the application process, which also shows that there are difficulties in obtaining entry into the RIX system causing barriers to entry in the market. To this should be added that only those institutions that applied for and been granted access to the RIX system participated in investigation, the agency refused has therefore not participated. When asked about how well the RIX system become influenced by suggestions and opinions so is part of the …show more content…
Although the results of this study should be interpreted with caution, this indicates that the pricing favors some participants more than others. If this is combined with the analysis of the price template that applies to RIX system,(With falling unit costs) then it is very likely that the smaller players, they are less satisfied with the investigation. Uncertainty about the size of the prism Allen's real impact means, however, that this should be interpreted with great caution. This shows that less than actors who are outside the RIX system in all probability would benefit even less of the cost structure in the RIX system. Overall, the qualitative empirical data and empirical data regarding the Riksbank's own study on the RIX system has a framing which could well penalize competition in the lending market, which would contribute to a continued oligopoly. This should then lead to an increase in market power of the incumbents. The probable economic effect of this is that those with large market power can charge a higher price in relative to their costs than others causing economic windfall profits for these and therefore a higher return on equity. The quantitative empirical data have also shown that a RIX membership has a statistically significantly associated with