Most observers have concluded that while money markets and government bond markets are rapidly integrating following … role of an active market for corporate control and of competition in banking integration. European listed banks … profitability appears to converge to a common level. There is weak evidence that competition eliminates high profits for these banks …

A growing body of literature indicates that competition increases bank soundness. Applying an industrial organization … role in the transmission from competition to soundness. We use a twopronged approach. First, we employ Granger causality … tests to establish the link between competition and measures of profit efficiency in banking, and find that competition …