Technological advances, increased transparency and new providers will tend to heighten the competitive nature of the market, which in Europe is being reflected, for instance, in the continuing fall in interest-rate margins. However, the process of consolidation may lead to a degree of concentration which impairs competition, although up to a certain threshold competition is tending to increase. The situation is different throughout Europe.
In Germany, at any rate, the five largest banks account for only 17% of the volume of domestic business. In individual business segments, too, it cannot be said that individual institutions have a position that impairs competition. By contrast, the degree of concentration in other European countries is much higher, reaching 60 to 80% in some cases. III.