A trend common to virtually all European banking markets over the last decade or so has been the fall in bank numbers. The decline in number of banks and the associated increase in market concentration may suggest that banking service choice is declining. However, a growth in branch numbers in...

Minimum capital requirement regulation forces banks to refund a substantial amount of their investments with equity. This creates a buffer against losses, but also in- creases the cost of funding. If higher refunding costs translate into higher loan interest rates, then borrowers are likely to...