volume 17, issue 4, P535-547 2001
DOI: 10.1093/oxrep/17.4.535
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Abstract: This paper reviews the role of competition in banking against the background of a transforming sector. It uses industrial organization and modern financial intermediation analysis to study the relationships between the level of competition, risk-taking incentives, and the regulatory frame. The consequences for market structure of the liberalization process and the need for competition policy in the sector are highlighted.