Competition policy for banking sectors should re-orientate itself to concentrate more on the too-big-to-fail (TBTF) problem given fundamental changes to the structure of banking over the last two decades is increasing ‘contestability'.

The paper by Lev Ratnovski, entitled Competition Policy for Modern Banks, argues that financial innovations have expanded access to quantifiable, non-proprietary information on borrowers, "making banking less information-intensive and relationship-oriented, and