Brilliant publication, The Economist's current debate on banking is quite interesting on whether more competition makes banking more dangerous or not.
I believe the core of the problem is the expertise. Expertise in understanding the financial products, which is a scarce resource. And expertise is linked to competition.
1) Competition with more / new banks; then banking is more dangerous (lack of scarce resource)
2) With existing banks getting more competitive; then again more dangerous considering the nature of the industry.
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