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This useful new book contributes to the understanding of
competition policy in the Mexican banking system and explains how
levels of competition relate to banks' efficiency. It contrasts
concepts of economic theory with empirical evidence to distill
optimal policy decisions. The authors study the banking sector in
Mexico, a developing country with a regulated and sound banking
system and an industry with strong participation from global
systemic banks. However, the Mexican banking system continues to
have low financial deepening in the economy. Simultaneously,
changes experienced by the Mexican financial system in recent
decades have completely transformed its architecture, structure of
ownership and control, and its competitive conditions, and have
undeniably affected system performance and efficiency. This
provides a natural laboratory in which to answer the questions of
scholars, economists, and policymakers.
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