Competitive Collaboration and Market Contestability: Cases in Mexican and UK Banking, 1945-75
Author(s)
Batiz-Lazo, Bernardo; DelAngel, Gustavo A.
Abstract
Explores the emergence and evolution of collaboration agreements among different types of intermediaries in the British and Mexican financial systems, 1945-75. Collaboration in Britain involved agreements between non-bank and non-finance providers aimed at modifying their competitive capabilities and circumventing barriers to enter deposit markets. Collaboration in Mexican banking included agreements between commercial banks and small regional banks during the period. This article sheds light on the success of collaboration agreements through changes in competitive strength rather than the longevity of the transaction or the formality and structural visibility of the agreements. Evidence documented in the article also helps in remedying a shortage of research around financial institutions in less-developed countries, and the economic and business history of Latin America, while providing an international comparison.
