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Intermediation, integration and internationalisation: a survey on banking in Europe

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  • J.A. Bikker
  • A.A.T. Wesseling

Abstract

This paper provides a survey on recent and current developments in the European banking industry. Traditional banking activities have diminished in relative terms, but banks remain the predominant players in the euro area financial system. Economic and monetary integration in the EU has strongly encouraged internationalisation and concentration. The share of foreign assets and liabilities on the EU banks' balance sheets is still modest but sharply rising. So far, mergers and acquisitions have mainly been of a domestic nature. Informational technology has changed banks' production, products and markets, whereas the Internet may radically change the way banks interact with customers. All these phenomena have strong effects on concentration, competition and efficiency. Finally, we address the question whether the observed consolidation and increased competition might have impaired financial stability.

Suggested Citation

  • J.A. Bikker & A.A.T. Wesseling, 2003. "Intermediation, integration and internationalisation: a survey on banking in Europe," Research Series Supervision (discontinued) 53, Netherlands Central Bank, Directorate Supervision.
    • Handle: RePEc:dnb:ressup:53
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    References listed on IDEAS

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    Cited by:

    1. Jacob A. Bikker & Jaap W.B. Bos, 2005. "Trends in Competition and Profitability in the Banking Industry: A Basic Framework," Chapters in SUERF Studies, SUERF - The European Money and Finance Forum.
    2. 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.
    3. 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.
    4. Campa, Jose M. & Hernando, Ignacio, 2007. "The reaction by industry insiders to M&As in the European financial industry," IESE Research Papers D/689, IESE Business School.
    5. J.W.B. Bos, 2003. "Improving Market Power Tests: Does it matter for the Dutch Banking Market?," Research Series Supervision (discontinued) 56, Netherlands Central Bank, Directorate Supervision.

    More about this item

    JEL classification:

    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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