IDEAS home Printed from https://ideas.repec.org/a/bde/revisl/y2022i5n1.html
   My bibliography  Save this article

Digitalisation and banking: new risks and three scenarios for the European banking system of the future

Author

Listed:
  • Thorsten Beck
  • Antonio Sánchez

Abstract

This article discusses the impact of digitalisation on the structure of the European banking system. The recent wave of financial innovation, based on the opportunities created by digitalisation in terms of new products or new services, has come mostly from outside the incumbent banking system. How new financial service providers (fintechs and big techs) compete or cooperate with incumbent banks has the potential for substantial disruption in the provision of financial intermediation. As a result, financial risks may be partially shifted away from the banking sector, while non-financial risks increase their relevance. In order to better frame a policy response, we consider three scenarios for the future European banking system: (i) incumbent banks continue their dominance; (ii) incumbent banks retrench; and (iii) retail central bank digital currencies are introduced under certain specifications.

Suggested Citation

  • Thorsten Beck & Antonio Sánchez, 2022. "Digitalisation and banking: new risks and three scenarios for the European banking system of the future," Financial Stability Review, Banco de España, issue MAY.
    • Handle: RePEc:bde:revisl:y:2022:i:5:n:1
    Note: 42
    as

    Download full text from publisher

    File URL: https://www.bde.es/f/webbde/GAP/Secciones/Publicaciones/InformesBoletinesRevistas/RevistaEstabilidadFinanciera/22/1_FSR42_Banking.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bde:revisl:y:2022:i:5:n:1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/bdegves.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.