Beyond the Big Three: A Broader View of Competition in the Irish Loan Market

We assess competition in the Irish loan market using comprehensive Central Credit Register data covering all term loan originations from 2019–2025. Although the exit of two retail banks has heightened concerns about concentration, we show that aggregate market concentration is substantially lower — and has declined — once non-bank lenders (NBLs), credit unions, and foreign banks are included. The market is integrated rather than segmented: firms, particularly SMEs, frequently combine bank and non-bank credit, and borrowing relationships with NBLs are persistent. Pricing evidence shows that non-banks charge a premium in less standardised segments — largest in commercial and business lending — but not in the highly standardised residential mortgage market, consistent with product differentiation and specialisation rather than market power. Overall, non-bank lenders provide meaningful competitive discipline in an integrated credit market.