Banking; analysing through economics the Spanish banking system Essay

Banking; analysing through economics the Spanish banking system - Essay Example Globalization has brought about the integration of the world markets. In this sense the global market has tended to move towards a perfect and pure market structure as defined in the economic theory; however the exact form of global markets have remained far from the theoretical ideals of perfect and pure. Regardless of the product or service that is being studied; it is noticeable that all of a sudden the information flow has become more rapid, regulatory structures have been oriented more towards free market structures and the movement of capital and permission to access local markets has become freer. This has encouraged national businesses to aim to be global businesses and the global businesses to target national markets. However, the roughness in the control of market shares in the past has tended more towards monopolies but, structures have not stayed the same, these have become, in general, oligopolies. This aspect of globalisation has thus changed the very nature of competit ion and the markets will move forward into a new direction of perfect markets if globalisations are sustained and its true objective is achieved. The Banking industry is no exception. Competition in the banking sector depends largely upon the efficiency with which financial services are produced, the quality of financial service produced and the relative degree of innovation in the sector. (Claaessens and Laeven). This however depends upon how the banking sector competes with each other and what is the nature of the financial markets. This is important because the nature of the markets in the financial sector Banks enable consumers to do essential functions such as saving, investing and storing money or money equivalents.