ABSTRACT
How much competition is desirable in banking, and to what extent banking competition has been affected by the crisis, are questions more open than ever. While nobody doubts that competition is good for customers in most sectors of the economy, the answer is much more complex and controversial in banking. Back in the summer of 2011, The Economist1 hosted a vivid debate on the issue of competition in banking and its effects on financial stability. Well known for its liberal approaches to virtually all sectors of the economy, the magazine ended up supporting the notion that “more competition makes banking more dangerous.”
