Post-crisis, for example, banks looked to increase the amount of deposit funding relative to wholesale funding, increasing competition for deposits, and in particular, term deposits. Regulators therefore need to be aware of this and take it into account when considering financial stability.
Third, at least some sectors of the market do appear to be contestable, as demonstrated by the impact that new entrants have periodically had on the competitive landscape. The arrival of the mortgage originators in the 1990s, for example, resulted in more competition in the housing lending space.