Moreover, frequent reviews of the data should allow central banks to take account of any future changes when setting policy. On balance, and despite these quite positive results, our study recommends that central banks should remain alert to the implications of any future reductions in the competitiveness of the markets most  BIS Review 17/2001  3  important for monetary policy implementation.
Although competition is emerging with the growth of mid-sized banks and foreign acquisitions, five largest banks hold 50.6% of total banking sector assets; though there has been a clear reduction in the level of concentration which was at 63.2% in 2000. While this is a concern, the presence of undercapitalized small banks is likely to pose risks particularly during periods of adverse economic cycles.