This paper was prepared by Beatriz Marques from the OECD Competition Division, with design assistance from Erica Agostinho. The paper benefited from comments by Ori Schwartz, Antonio Capobianco, Maria Pilar Canedo, Despina Pachnou and Federica Maiorano from the OECD Competition Division. It also benefited from comments by Antonio Gomes from the OECD Directorate for Financial and Enterprise Affairs, as well as Serdar Celik, Oliver Garrett-Jones, Tommaso Majer, Takashi Kondo, Miles Larbey and Fatos Koc from the OECD Capital Markets Division. It was prepared for the discussion on “Balancing Prudential Regulation and Competition in Banking” at the 147th meeting of the Competition Committee.