About NAB
• One of the leading banks of Australia
• 13 million customers
• 1600 service centres in entire Australia
Competition in Banking Industry
01
Highly competitiv
e Banking Industry
02 03
Dominated by 4 key banks: National Australia Bank.
Commonwealt h Bank, ANZ Bank, and Westpac
Future of banking industry is expected to have some drastic changes
Market Structure
NAB operates in Oligopolistic and a market structure in which a series of companies offer products.
Number of sellers in such a market structure is not as large as it is necessary to assure perfect competition prices.
Oligopoly Market
Factors influencing Demand in Banking Industry
• The interest rate on loads
• The value of number of monetary transactions that people are expected to conduct
• Changes in the gross domestic product of the country
• The extent to which people want to have other financial assets like saving, property as well as bonds
• The speculative motive of the people to hold money
• The rate of predicted inflation
• The speed of financial innovation
Factors influencing supply in Banking Industry
• Policy developed by Central Bank of Australia
• Reserve requirements imposed by banks
• Open market operations
Elasticity
• There is high price elasticity of demand in the Australian banking sector especially for NAB.
• This is because of the high interest rates that NAB in the country charge on any funds borrowed.
Conclusion
• To conclude, four leading banks have taken the whole country into its grip thereby overshadowing the existence of any other bank there.
• This has proved to be a positive aspect because of the trustworthiness of these banks which has resulted in absolutely no fraudulent cases in the banking field of the country. In this sector,