Competitiveness in the European Consolidated Banking Sector After the 2008 Financial Crisis
The constitutional conception of market integration within the European Union entails creating a level playing field for competition in the consolidated banking sector. The financial crisis of 2008 brought with it the need to proceed with care as it rolled back the gains of improving competitive con...
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| Format: | Article |
| Language: | English |
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Sciendo
2020-12-01
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| Series: | Review of Economic Perspectives |
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| Online Access: | https://doi.org/10.2478/revecp-2020-0021 |
| _version_ | 1818978469391892480 |
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| author | Klutse Senanu Kwasi |
| author_facet | Klutse Senanu Kwasi |
| author_sort | Klutse Senanu Kwasi |
| collection | DOAJ |
| description | The constitutional conception of market integration within the European Union entails creating a level playing field for competition in the consolidated banking sector. The financial crisis of 2008 brought with it the need to proceed with care as it rolled back the gains of improving competitive conditions in the financial sector. Even though a lot of studies have investigated competitive conditions prior to the crisis, the same cannot be said of periods after the crisis. Using both structural and non-structural measures of competitive conditions, this study found that the consolidated banking sector in Europe shows signs of a monopolistic competitive market structure based on its revenue and cost measures. As five countries – United Kingdom, France, Germany, Spain, Italy – control about 70 per cent of total assets in the consolidated banking sector. The capital expense to fixed assets and total assets in the Europe area were found to be negatively related to measures of profitability in the sector. They were indicating that the accumulation of assets eats into the incomes of banks in the sub-region, whereas bank exposures may be affecting bank profits. |
| first_indexed | 2024-12-20T16:44:08Z |
| format | Article |
| id | doaj.art-8b5120c428e64e92a35054dab9f65a6b |
| institution | Directory Open Access Journal |
| issn | 1804-1663 |
| language | English |
| last_indexed | 2024-12-20T16:44:08Z |
| publishDate | 2020-12-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Review of Economic Perspectives |
| spelling | doaj.art-8b5120c428e64e92a35054dab9f65a6b2022-12-21T19:32:59ZengSciendoReview of Economic Perspectives1804-16632020-12-0120443144410.2478/revecp-2020-0021revecp-2020-0021Competitiveness in the European Consolidated Banking Sector After the 2008 Financial CrisisKlutse Senanu Kwasi0Institute of Finance and International Economic Relations, University of Szeged, Szeged, Hungary; H-6722 Szeged, Kálvária sgt 1, HungaryThe constitutional conception of market integration within the European Union entails creating a level playing field for competition in the consolidated banking sector. The financial crisis of 2008 brought with it the need to proceed with care as it rolled back the gains of improving competitive conditions in the financial sector. Even though a lot of studies have investigated competitive conditions prior to the crisis, the same cannot be said of periods after the crisis. Using both structural and non-structural measures of competitive conditions, this study found that the consolidated banking sector in Europe shows signs of a monopolistic competitive market structure based on its revenue and cost measures. As five countries – United Kingdom, France, Germany, Spain, Italy – control about 70 per cent of total assets in the consolidated banking sector. The capital expense to fixed assets and total assets in the Europe area were found to be negatively related to measures of profitability in the sector. They were indicating that the accumulation of assets eats into the incomes of banks in the sub-region, whereas bank exposures may be affecting bank profits.https://doi.org/10.2478/revecp-2020-0021banksmonopolymarket structureg21l12l11 |
| spellingShingle | Klutse Senanu Kwasi Competitiveness in the European Consolidated Banking Sector After the 2008 Financial Crisis Review of Economic Perspectives banks monopoly market structure g21 l12 l11 |
| title | Competitiveness in the European Consolidated Banking Sector After the 2008 Financial Crisis |
| title_full | Competitiveness in the European Consolidated Banking Sector After the 2008 Financial Crisis |
| title_fullStr | Competitiveness in the European Consolidated Banking Sector After the 2008 Financial Crisis |
| title_full_unstemmed | Competitiveness in the European Consolidated Banking Sector After the 2008 Financial Crisis |
| title_short | Competitiveness in the European Consolidated Banking Sector After the 2008 Financial Crisis |
| title_sort | competitiveness in the european consolidated banking sector after the 2008 financial crisis |
| topic | banks monopoly market structure g21 l12 l11 |
| url | https://doi.org/10.2478/revecp-2020-0021 |
| work_keys_str_mv | AT klutsesenanukwasi competitivenessintheeuropeanconsolidatedbankingsectorafterthe2008financialcrisis |