"The book is worth reading from cover to cover. It is thoughtful, well written, lucidly surveys some well-known material, and brings useful insights using some of the tools of industrial organisation economics."---Geoffrey Wood, Central Banking Journal

"Can the banking industry be both stable and openly competitive? Can we have it all? This is the fundamental question addressed in Competition and Stability in Banking. Xavier Vives is uniquely placed to write this hugely interesting and original book, as his research during the past twenty years has spanned banking theory, industrial organization, and competition policy. No other economist has covered this ground so thoroughly. As it turns out, competition issues—whether between regulated banks, or shadow banking and the regulated sector—are at the center of banking crises and bank prudential regulation. Vives provides a uniquely lucid and stripped-down discussion of the theory, empirical research, institutional backgrounds, and policy responses across countries. Anyone looking for a comprehensive and authoritative layman's treatment of these complexly interwoven issues should read this book."-Patrick Bolton, Columbia University"The banking sector is at the core of our present economic troubles. Xavier Vives provides a rigorous overview of the intense regulatory activity put forward to address the problems encountered since the outbreak of the financial crisis, and also discusses the role of competition policy as the complementary instrument for improving the efficient functioning of the market. Vives's contribution is an essential tool for understanding what happened in our economies since 2007."—Joaquín Almunia, former vice president and commissioner for competition, European Commission"Now that the global financial crisis has subsided, governments and regulators must deal with the issue of what to do about banking competition in the long term. Xavier Vives is one of the most distinguished and knowledgeable economists in the world, and his excellent and timely book analyzes the interactions between banking regulation and competition policy. It will be useful to experts in the field and of interest to general readers."—Franklin Allen, Imperial College London and University of Pennsylvania"Bringing together material in an easily understood framework, this lucid and well-written book looks at competition and competition policy in banking. It serves as a good reference for academics and it will help policymakers understand better trade-offs and policy choices. A major accomplishment."—Stijn Claessens, senior advisor, Board of Governors of the Federal Reserve System