This paper analyses the impact of loan market competition on the interest rates applied by euro area banks to loans and … deposits during the 1994-2004 period, using a novel measure of competition called the Boone indicator. We find evidence that … stronger competition implies significantly lower spreads between bank and market interest rates for most loan market products …

recent studies on competition and efficiency in national banking sectors are related to concentration and profitability … and competition. There is also no robust relationship between concentration and profitability. …