One can imagine a central bank which would have to tighten its monetary policy for price stability reasons, but is prevented from doing so for the fear that the value of the assets of the banking system would decrease and a financial crisis could ensue. Episodes which fit that kind of financial dominance have been observed, in the past, especially in the emerging economies.
Fortunately, our analysis indicates that the greater concentration of payment flows does not appear to have decreased competition in markets for payment and settlement services. However, we suggest that it would be advisable for government authorities to continue to monitor competition in the payment system. In contrast, our work indicates we should closely monitor the risk implications of consolidation in payment and settlement systems.