"Under the traditional "competition-fragility" view, more bank competition erodes market power, decreases profit … margins, and results in reduced franchise value that encourages bank risk taking. Under the alternative "competition …-stability" view, more market power in the loan market may result in greater bank risk as the higher interest rates charged to loan …

economic growth are ambiguous in theory. Moreover, measuring competition in the financial sector can be complex. In this paper … theory. They then relate this competition measure to growth of industries and find that greater competition in countries … in banking"--World Bank web site …