(Gabaix, 2011) for the banking sector, introducing Bertrand competition and heterogeneous banks charging variable markups … fluctuations in the credit supply when the banking sector is highly concentrated. We empirically assess the relevance of these … granular effects in banking using a linked micro-macro dataset of more than 80 countries for the years 1995-2009. The banking …

of itself, and it may also influence concentration in banking and thus the impact of bank-specific shocks for the …