keannu
VIP Member
- Joined
- Dec 27, 2010
- Member Type
- Student or Learner
- Native Language
- Korean
- Home Country
- South Korea
- Current Location
- South Korea
Even thought this deals with concrete things, it has some abstract nuance I can't grasp. What is significant scale economies ? Is it about the plan to combine banks, insurance compaies, etc to make an efficient system??
ex)Significant benefits likely will result from the integration of financial services markets. A central consideration is the inclusion of significant scale economies - the cost advantages that a business obtains due to expansion - in banking, securities markets, and payment systems. For instance, modern banks, insurance companies, pension funds, payment systems, and securities markets all use computer-based technology that is scale-dependent for efficient operation. Even in their smallest confugurations, these technologies often exceed the needs of institutions in small financial systems....And additional benefit is that, in larger markets, the regulatory infrastructure tends to be of higher quality and lowe cost than in smaller markets.
ex)Significant benefits likely will result from the integration of financial services markets. A central consideration is the inclusion of significant scale economies - the cost advantages that a business obtains due to expansion - in banking, securities markets, and payment systems. For instance, modern banks, insurance companies, pension funds, payment systems, and securities markets all use computer-based technology that is scale-dependent for efficient operation. Even in their smallest confugurations, these technologies often exceed the needs of institutions in small financial systems....And additional benefit is that, in larger markets, the regulatory infrastructure tends to be of higher quality and lowe cost than in smaller markets.
