Competition between banks will tend to bring the lending and borrowing rates closer together, theoretically squeezing bank profits to zero in the ideal case of a perfectly competitive market.

FORBES: Magazine Article

In oligopoly, a few big firms compete with each other, but not primarily by trying to charge the lowest prices, which are thus usually higher than in a perfectly competitive market.

ECONOMIST: Economics focus

On the most abstract level this is because liquidity earns real rents, those rents are distilled by a perfectly competitive market and ultimately accrue to the owners of the irreproducible factors of production.

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Thus devolution to a competitive freed market may not satisfy the criteria of justice perfectly in every respect.

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