Australia has tightly regulated control preventing our big banks from merging and forming a market that may see a duopoly in control. Ironically, the royal commission into the banking and finance industry has in part concluded that this policy has stabilised an oligopoly market where the four big banks could exploit consumers.

Analyze factors affecting the nature/characteristics of big bank markets in Australia over the last few years and answer the following questions.

a Factors which have affected the quantity of demand (i.e. the closeness of substitute, the existence of substitute or complement of the products, demand elasticity etc.)

b. Factors that have affected the quantity of supply (i.e. input price of production, competition in the market, technological development etc.)

c. Type of markets (i.e. perfect competition, monopoly, monopolistic and oligopoly) and how this influence pricing decision.

d. How do the Ukrainian-Russian war and COVID-19 specifically affect this particular market?

e. Government interventions such as tax, budget policy, regulation and the impact of this on market conditions.

f. How this market can contribute to GDP (i.e. Consumption, Investment. Government Spending and Net export).