Thai banking industry shows “Monopolistic Character!” refuses to lower rates in-line with Central Bank

Thailand‘s banking industry, noted for its monopolistic character, has refused to reduce rates, in-line with the Thai central bank recent move to lowere its policy rate by 0.25%. The Thai banking industry said the reason it has not reduce rates, in-line with the central bank, was because of the “Fierce Competition” in the Thai banking industry. The Thai Central Bank, after seeing the private banks refused to lower rates, said the banks are cautious because of the rapid movement with funds flow. The Thai central bank reduced its interest rates, after months of pressure, the the Thai economy was slowing and the baht was gaining strength. Most neutral observer says, the Thai banking regularot, the Central bank, main objective is also to protect Thai banking industry profit, where the Thai Central bank chief, Prasarn, does not have a “Neutral Stance” but that Prasarn is a stability hawk, who is anti-growth. Wikipedia says of Monopoly; A monopoly (from Greek monos μόνος (alone or single) + polein πωλεῖν (to sell)) exists when a specific person or enterprise is the only supplier of a particular commodity (this contrasts with amonopsony which relates to a single entity’s control of a market to purchase a good or service, and with oligopoly which consists of a few entities dominating an industry).[1] Monopolies are thus characterized by a lack of economic competition to produce the good or service and a lack of viable substitute goods.[2] The verb “monopolize” refers to the process by which a company gains the ability to raise prices or exclude competitors. In economics, a monopoly is a single seller. In law, a monopoly is a business entity that has significant market power, that is, the power to charge high prices.[3] Although monopolies may be big businesses, size is not a characteristic of a monopoly. A small business may still have the power to raise prices in a small industry (or market).[4] When not coerced legally to do otherwise, monopolies typically maximize their profit by producing fewer goods and selling them at higher prices than would be the case for perfect competition.[citation needed] Monopolies can be established by a government, form naturally, or form by integration.

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