conclusions. First, further steps in regional integration would enhance competition and produce large economic benefits for both …

As in other sectors, competition in finance matters for allocative, productive and dynamic efficiency. Theory suggests …, however, that unfettered competition is not first best given the special features of finance. I review these analytics and … describe how to assess the degree of competition in markets for financial services. Existing research shows that the degree of …

banks can extract market power rents. We show that more bank competition results in lower economy-wide risk, lower bank … capital ratios, more efficient production plans and Pareto-ranked real allocations. Perfect competition supports a second best …

. The model predicts that as competition increases, both loans and assets increase; however, the effect on the loans …-to-assets ratio is ambiguous. Similarly, as competition increases, the probability of bank failure can either increase or decrease. We …

models. The intuition for this result hinges on some New Keynesian features of our framework, such as imperfect competition …