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The Integration of EU Banking Markets

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  • Gual, Jordi

Abstract

The goal of this Paper is to provide an assessment of the EU policies that pursue the creation of a single banking market. The Paper evaluates the degree of integration of EU banking markets and discusses whether current policies are the most appropriate instruments for market integration. After comparing the key features of EU policy with alternative methods of market opening, the analysis stresses that market opening in regulated markets such as banking faces a difficult trade-off between respect for domestic preferences and the elimination of regulations that protect local competitors and are not justified on efficiency grounds. The Paper also provides an overview of recent research, which has looked at different indicators of market integration in EU banking. Finally, it analyses the impact of integration policies on the conduct, the structure and the performance of the banking industry.

Suggested Citation

  • Gual, Jordi, 2004. "The Integration of EU Banking Markets," CEPR Discussion Papers 4212, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:4212
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    References listed on IDEAS

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    Cited by:

    1. José Campa & Ignacio Hernando, 2008. "The Reaction by Industry Insiders to M&As in the European Financial Industry," Journal of Financial Services Research, Springer;Western Finance Association, vol. 33(2), pages 127-146, April.
    2. Goddard, John & Molyneux, Philip & Wilson, John O.S. & Tavakoli, Manouche, 2007. "European banking: An overview," Journal of Banking & Finance, Elsevier, vol. 31(7), pages 1911-1935, July.
    3. Pietro Alessandrini & Manuela Croci & Alberto Zazzaro, 2009. "The Geography of Banking Power: The Role of Functional Distance," Springer Books, in: Damiano Bruno Silipo (ed.), The Banks and the Italian Economy, chapter 0, pages 93-123, Springer.
    4. Campa, Jose Manuel & Hernando, Ignacio, 2006. "M&As performance in the European financial industry," Journal of Banking & Finance, Elsevier, vol. 30(12), pages 3367-3392, December.
    5. Massimiliano Affinito & Fabio Farabullini, 2009. "Does the Law of One Price Hold in Euro-Area Retail Banking? An Empirical Analysis of Interest Rate Differentials across the Monetary Union," International Journal of Central Banking, International Journal of Central Banking, vol. 5(1), pages 5-37, March.
    6. Raffaella Calabrese & Claudia Girardone & Alex Sclip, 2021. "Financial fragmentation and SMEs’ access to finance," Small Business Economics, Springer, vol. 57(4), pages 2041-2065, December.
    7. Schüler, Martin & Heinemann, Friedrich, 2005. "The Costs of Supervisory Fragmentation in Europe," ZEW Discussion Papers 05-01, ZEW - Leibniz Centre for European Economic Research.
    8. Yuliya Demyanyk & Charlotte Ostergaard & Bent E. Sorensen, 2008. "Risk sharing and portfolio allocation in EMU," European Economy - Economic Papers 2008 - 2015 334, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.

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    More about this item

    Keywords

    Banking; market integration; European union;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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