Many writers have cautioned against excessive competition for market share in banking, and there have even in recent years been distinguished advocates of, for example, deposit interest ceilings to inhibit reckless competition for funds. In the run-up to the crash in Ireland, banks had unlimited access to funds in the global money market, so they had less need to drive up deposit rates.
Such a process leads to higher global growth, since countries with surplus savings can invest them in countries that do not generate enough savings internally. However, when imbalances grow at an unsustainable pace, as appears to be the case at present, some form of correction must take place.