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Essay text:
Due to lowered entry and exist and deconstruction, for some sub-financial markets, contestability in banking is also raised.
2. Technology influence Economy of scale:
Competitive pressure force banks to lower their cost. Bank seeks to get economy of scale in bank procession instead of being a big bank. Bank seeks to secure the optimal business structure, and secure the competitive imperative of economy of scale. There are other options to get economy of scale, including joint venture and confederation of financial firms. Small firms also can get economy of scale by outsourcing, i.e. buy in economy of scale...
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