contribution is two-fold. First, we expand the theory of granularity to encompass the Bertrand competition frequently used in … right tail of the bank size distribution follows a power law. Also, the presence of big banks as measured by high market …

(Gabaix, 2011) for the banking sector, introducing Bertrand competition and heterogeneous banks charging variable markups …. Using this framework, we show conditions under which idiosyncratic shocks to bank lending can generate aggregate … sector for many countries is indeed granular, as the right tail of the bank size distribution follows a power law. We then …

taken over by others are less efficient than the average bank in the same size class, but exhibit on average the same …

This study examines the impact of bond markets on both bank profit and cost efficiency. By employing the stochastic … the period from 2004 to 2017, we find that both the bond market development and bond market structure are relevant to bank … efficiency. The development of bond markets generally has a positive (negative) effect on bank profit (cost) efficiency. Given …