Abstract
Competition benefits consumers in many ways. On credit markets, benefits arise from the speed of interest rate adjustment. With low competition banks are slow to pass declining market rates through to debtors. With high competition banks are forced to react in a faster way - otherwise they risk to lose market shares. Since integration of the EU markets for financial services intensifies competition it should, therefore, also speed up pass-through of interest rate changes.
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Heinemann, F., Schüler, M. (2003). Integration Benefits on EU Retail Credit Markets — Evidence from Interest Rate Pass-Through. In: Cecchini, P., Heinemann, F., Jopp, M. (eds) The Incomplete European Market for Financial Services. ZEW Economic Studies, vol 19. Physica, Heidelberg. https://doi.org/10.1007/978-3-642-57364-4_5
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DOI: https://doi.org/10.1007/978-3-642-57364-4_5
Publisher Name: Physica, Heidelberg
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