*7.2. Answer*

The use of a single output (total assets) in our research is due to constrains on data availability with respect to the sub-period 2005–2010. For this reason, we preferred the use of total assets as our single aggregate output factor, following the most common strand in the empirical banking literature (e.g., Amidu and Wolf 2013; Angelini and Cetorelli 2003; Anginer et al. 2014; Berger et al. 2009; Carbó et al. 2009; Cruz-García et al. 2017; De-Ramon et al. 2018; Fernández and Garza-García 2015; Fernández de Guevara et al. 2007; Fu et al. 2014; Fungacova and Weill 2013; Leroy and Lucotte 2017; Liu and Wilson 2013; Sanya and Gaertner 2012; Turk-Ariss 2010; Weill 2013). In the opposite case, we would have preferred the use of an aggregated weighted-average Lerner index (e.g., Kick and Prieto 2015), as this could fit better to the goals of our study.

Regarding the remark on the use of the term *u*, see our answer in Section 4.

#### **8. Convergence Analysis with Respect to Market Power**
