Competition and regulation in the Finnish ATM industry

Bericht

Declining ATM numbers pose a challenge for competition policy and financial regulatory authorities. In this report we review the Finnish experience of regulating the competition in the ATM industry. To analyze the Finnish developments we extend the model of Kopsakangas-Savolainen and Takalo (2014), and draw on the existing literature and benchmarks from the selected other countries. We document how changes in the ATM market regulation and market structure has decoupled the ATM network size from the declining cash use in Finland. The Finnish regulation has almost exclusively focused on foreign fees, while in general it would be better to regulate interchange fees. If the optimal fee regulation is not feasible, the authorities could also consider quantity regulation.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: BoF Economics Review ; No. 8/2021

Classification and Topics

• Classification: Wirtschaft
• Subject: ATM industry ; cash ; competition policy ; optimal regulation ; retail payments

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Markkula, Tuomas ; Takalo, Tuomas
• Event: Veröffentlichung
• (who): Bank of Finland
• (where): Helsinki
• (when): 2021

Further information

• Handle: http://hdl.handle.net/10419/247658
• URN: urn:nbn:fi:bof-202110142058
• Last update: 10.03.2025, 11:43 AM CET