Legal Analysis of the Interaction between Competition law and Policies of Maintaining Stability in the Banking System with Emphasis on Banks' Merger (Comparative Study of U.S. and Iranian law)

There are different opinions about the application of competition law on the banking system. Many scholars do not consider the banking system to be subject to competition law because they consider the competition as a threat to the stability and security of the banking system. In contrast, some scholars believe in the exercise of competition law in the banking system. It is impossible to fully implement competition law in the banking sector due to the inherent characteristics of the banking system. Competition in the banking system increases efficiency and innovation in service delivery, however; stability is essential to maintain confidence. These purposes are not always consistent. The present paper seeks to examine the theories proposed in this field and the suggested solutions in American law to examine the interaction of competition law on the one hand and the policies of maintaining stability on the other hand regarding the merger of banks. The results of the study indicate lack of attention to the requirements and specific features of the banking system in the application of competition law on the merger of banks in the Iranian legal system.