Because these ‘superstar’ firms are more productive than average, they gain market share at the expense of less-productive competitors. The leading firms could start moving further and further ahead of the pack. The firms that lag behind would then find it harder and harder to catch up. The result could be that markets become more concentrated.
Bank supervision and regulation cannot function well if sound corporate governance is not in place. It is imperative to instil the levels of accountability and checks and balances within each bank. This principle should also be your motto in your organisation.