... trillion by 2008 (€32 trillion in the euro area), or about 350% of EU GDP (chart 2.3.1). With the onset of the crisis, there has been a slowdown in the relative growth of the sector to the EU economy, ... the alleged degree of competition, or the lack thereof, of the sector. The latter will also, and importantly, depend on the contestability of the sector, i.e. the ability of new entrants to ... allocation of lending from the deposit bank to other financial activities, thereby to the detriment of the non-financial sectors of the economy; 4) reduce the interconnectedness between banks and the...