Importance The modern stage of economic development exhibits rapid processes of monopolization of the production and financial sector thus demonstrating a tendency to concentration and centralization of capital. In the financial sector, these processes have resulted in established system-relevant institutions, the activities of which became one of the causes of the 2008 financial crisis. Objectives The study aims to review the nature of processes of the banking sector monopolization and assess the phenomenon through evaluating its risks and opportunities for economic development in the interests of the entire society. Methods I reviewed the case of the banking sector of the U.S. financial system through analyzing the statistical series and the history of the policy of regulatory authorities, and defined the impact of monopolization processes on the sector’s efficiency. Results On the one hand, the concentration of bank capital helps increase profitability and soundness of the sector. On the other hand, it creates conditions for economic and political domination of big financial corporations thus jeopardizing sustainable economic development. The crisis of the global financial system displayed controversies of the regulating policy of State authorities that have to save system-relevant banks using taxpayers' money through nationalization or recapitalization. Conclusions The banking sector monopolization is of dual nature, and this fact precludes from any categorical assessment of the phenomena, either positive or negative, while developing the public policy. The objective need to subordinate the monopoly capital to public interests enables to overcome the negative impact of economy monopolization and exploit its advantages.
Keywords: monopolies, concentration, banking sector, systemic risk, USA
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