. Many empirical studies suggest that financial reform promoted bank competition in most mature and emerging economies …. However, some earlier studies that adopted conventional approaches to measure competition concluded that bank competition in … specifications and estimation methods. All in all, our analysis suggests that bank lending markets in China have been more …

approach is able to measure competition of bank market segments, such as the loan market, whereas many well-known measures of … ignores differences in bank product quality and design, as well as the attractiveness of innovations. We measure competition …

stronger competition implies significantly lower spreads between bank and market interest rates for most loan market products … bank interest rates, we likewise find that banks tend to price their loans more in accordance with the market in countries … where competitive pressures are stronger. Further, where loan market competition is stronger, we observe larger bank spreads …