Bank consolidation has become a prominent trend in the financial industry, driven by factors such as globalization, technological advancements, and regulatory changes. This study examines the effects of bank consolidation on market competition. Bank consolidation refers to the merger or acquisition of banks, leading to larger institutions with increased market share and potentially greater economies of scale. Proponents argue that consolidation can enhance efficiency, reduce costs, and improve service delivery through enhanced technological capabilities and expanded geographic reach. However, concerns arise regarding its impact on market competition, as larger banks may wield substantial market power, potentially limiting consumer choice and increasing pricing power. Empirical studies suggest mixed effects of bank consolidation on market competition. On one hand, consolidated banks may achieve cost efficiencies, allowing them to offer competitive pricing and better services. On the other hand, increased concentration in the banking sector can lead to reduced competition, higher barriers to entry for smaller institutions, and potentially less favorable outcomes for consumers. Studies often employ metrics such as the Herfindahl-Hirschman Index (HHI) to measure market concentration and assess changes in competition following consolidation events. Policymakers face a delicate balancing act in regulating bank consolidation to promote both efficiency and competition. Regulatory frameworks, including antitrust laws and prudential regulations, aim to mitigate potential adverse effects on market competition while allowing banks to achieve economies of scale and maintain financial stability. Measures such as ensuring transparency in merger approvals and promoting entry by smaller banks can help preserve competitive dynamics in the banking sector. The impact of bank consolidation on market competition remains a subject of ongoing debate and empirical investigation. While consolidation offers potential benefits in terms of efficiency and innovation, its effects on market structure and consumer welfare necessitate careful scrutiny and regulatory oversight to ensure a balanced and competitive banking environment conducive to economic growth and financial stability.