2 / 18  BIS central bankers' speeches  This shift in global governance, in turn, has contributed to the belief that the EU may be more exposed to the risk that the monetary power of others is not used in its best interests, or is even used against it. [9] See, for example, European Commission (2018), ibid.
Indeed, indicators of market structure such as measures of concentration are not regarded as a very accurate measure of competition. In principle, four large banks could still compete very actively among themselves. So if you have a concern that competition could lead to financial instability, having a concentrated system will not necessarily address the issue. Second, competition tends to be pro-cyclical.