We use unique data on banks' private risk assessments of corporate borrowers to quantify how competition among banks … affect the risk sensitivity of interest rates in the Norwegian credit market. We show that an increase in competition makes … channel of how the competition-fragility nexus can operate. …

approach is able to measure competition of bank market segments, such as the loan market, whereas many well-known measures of … ignores differences in bank product quality and design, as well as the attractiveness of innovations. We measure competition …This paper is the first that applies a new measure of competition, the Boone indicator, to the banking industry. This …