Eubanking Structure

EU BANKING STRUCTURES

SEPTEMBER 2010

EU BANKING STRUCTURES

S E P T E M B E R 2010

In 2010 all ECB publications feature a motif taken from the €500 banknote.

© European Central Bank, 2010 Address Kaiserstrasse 29 60311 Frankfurt am Main Germany Postal address Postfach 16 03 19 60066 Frankfurt am Main Germany Telephone +49 69 1344 0 Website http://www.ecb.europa.eu Fax +49 69 1344 6000 All rights reserved. Reproduction for educational and non-commercial purposes is permitted provided that the source is acknowledged. Unless otherwise stated, this document uses data available as at 31 July 2010. ISSN 1830-1878 (online)

CONTENTS

EXECUTIVE SUMMARY 1 OVERVIEW OF DEVELOPMENTS IN EU BANKING STRUCTURES 1.1 1.2 1.3 1.4 Regulatory initiatives Bank intermediation Consolidation and M&A activity Concentration, competition and capacity indicators 1.5 Cross-border intermediation 1.6 Conclusion and outlook 2 SPECIAL FEATURE ON THE FUTURE EVOLUTION OF THE EU BANKING SECTOR 2.1 Activities, business models and strategies 2.1.1 Diversified versus specialised business models 2.1.2 In the medium term: towards diversified, safer and more rational models and risk practices 2.1.3 Adjustment of business lines within banks 2.1.4 Other possible developments 2.2 Funding and capital structures 2.2.1 Search for more and higher-quality capital 2.2.2 Search for stable sources of funding 2.2.3 Banks’ liability structures: towards more stability and higher costs 2.3 Conclusion ANNEXES 1 2 Structural indicators for the EU banking system Methodological note on the structural indicators 34 48 5

7 7 8 15 18 20 21 23 23 23

26 27 27 28 28 29

32 33

Appendix (published separately) Beyond RoE: How to measure bank performance

ECB EU banking structures September 2010

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ABBREVIATIONS

COUNTRIES BE BG CZ DK DE EE IE GR ES FR IT CY LV OTHERS EU (EU27) EU15 MU16

NMS RoW Belgium Bulgaria * Czech Republic * Denmark Germany Estonia * Ireland Greece Spain France Italy Cyprus *...