European banking: An overview

J Goddard, P Molyneux, John Ogilvie Stephen Wilson, Manouchehr Tavakoli

Research output: Contribution to journalReview articlepeer-review

163 Citations (Scopus)

Abstract

Against a background of far-reaching structural change in the banking sector, this article reviews the recent academic literature on developments in European banking. European banking markets have become increasingly integrated in recent years, but barriers to full integration, especially in retail banking, still remain. European integration has possible implications for systemic risk, and poses various challenges for the current supervisory framework. The banks' responses to the changing competitive environment include the pursuit of strategies of diversification, vertical product differentiation and consolidation. European integration has implications for competition in banking markets, for the nature of long-term borrower-lender relationships, and for the relationships between ownership structure, technological change and bank efficiency. The article concludes by reviewing recent literature on the credit channel in the monetary transmission mechanism, and interest rate pass-through. (c) 2007 Elsevier B.V. All rights reserved.

Original languageEnglish
Pages (from-to)1911-1935
Number of pages25
JournalJournal of Banking & Finance
Volume31
Issue number7
DOIs
Publication statusPublished - Jul 2007

Keywords

  • banking
  • European integration
  • consolidation
  • competition
  • relationship banking
  • efficiency
  • monetary policy transmission
  • MONETARY-POLICY TRANSMISSION
  • RATE PASS-THROUGH
  • ZONE RETAIL BANKING
  • LENDING RELATIONSHIPS
  • INTERNATIONAL EVIDENCE
  • EMPIRICAL-EVIDENCE
  • MARKET-STRUCTURE
  • FINANCIAL INSTITUTIONS
  • CREDIT MARKET
  • BLACK-BOX

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