Advertisement

The Euro Area Banking System: Where Do We Stand?

  • Francesca ArnaboldiEmail author
Chapter
Part of the Palgrave Macmillan Studies in Banking and Financial Institutions book series (SBFI)

Abstract

Banks across Europe have been through a significant restructuring process in response to weak profitability and to meet the new laws and regulations that have been approved in the wake of the financial crisis. Euro area banks have spent the last decade recovering from the global financial crisis. While the performance of European banks has improved since 2008, the average return on capital is still low. This average covers large geographic differences: banks in some European markets have completed this restructuring process, while other markets continue to struggle. This chapter in principle analyses the process of restructuring that euro area banks have been facing. Then it investigates the European banking system, presenting structural developments in the euro area, providing a broad set of structural information.

References

  1. Berger, A., and D. Humphrey. 1991. The dominance of inefficiencies over scale and product mix economies in banking. Journal of Monetary Economics 28.Google Scholar
  2. ———. 1992. The megamergers in banking and the use of cost efficiency as an antitrust defines. Antitrust Bulletin 37: 541–600.CrossRefGoogle Scholar
  3. Berger, A., G.A. Hanweck, and D.B. Humphrey. 1987. Competitive viability in banking. Scale, scope and product mix economies. Journal of Monetary Economics 20 (3): 501–520.CrossRefGoogle Scholar
  4. EBA. 2018. 2018 EU-wide stress test results, November.Google Scholar
  5. ECB. 2016. Adapting bank business models: Financial stability implications of greater reliance on fee and commission income. Financial Stability Review 2.Google Scholar
  6. ———. 2017. Financial integration in Europe, May.Google Scholar
  7. ———. 2018a. Financial stability review, May.Google Scholar
  8. ———. 2018b. How can euro area banks reach sustainable profitability in the future? Financial Stability Review, November. https://www.ecb.europa.eu/pub/fsr/special/html/ecb.fsrart201811_1.en.html.
  9. ———. 2018c. Statistical data warehouse. https://sdw.ecb.europa.eu/browse.do?node=9689369.
  10. ———. 2018d. SSM thematic review on profitability and business models. Report on the outcome of the assessment. ECB Banking Supervision, September.Google Scholar
  11. ———. 2018e. Financial integration in Europe, May.Google Scholar
  12. IMF. 2018. Euro area policies: Financial sector assessment program – Technical note – Systemic risk analysis, July.Google Scholar
  13. Molyneux, P., Y. Altunbas, and E.P.M. Gardener. 1996. Efficiency in European banking. John Wiley and Sons.Google Scholar
  14. Philippon, T. 2018. The FinTech opportunity. New York University, Stern School of Business, Mimeo.Google Scholar
  15. Revell, J. 1997. The recent evolution of financial systems. St. Martin’s Press.Google Scholar
  16. Sironi, A. 2018. The evolution of banking regulation since the financial crisis: A critical assessment. Baffi Carefin Centre Research Paper No. 2018-103.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.Department of Law BeccariaUniversity of MilanMilanItaly

Personalised recommendations