In-Depth Analysis - How have European banks developed along different dimensions of international competitiveness? - 02-05-2025
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The analysis explores the competitiveness of European banks compared to their US counterparts. It highlights structural differences between the two systems, particularly Europe’s reliance on traditional bank intermediation versus US’s market-based model.In-Depth Analysis - How have European banks developed along different dimensions of international competitiveness? - 02-05-2025
The analysis explores the competitiveness of European banks compared to their US counterparts. It highlights structural differences between the two systems, particularly Europe’s reliance on traditional bank intermediation versus US’s market-based model. European banks generally lag in profitability and market valuations, but remain central to credit provision and financial inclusion across the EU. US banks have benefitted from more favourable macroeconomic scenarios. At the same time, recent improvements in European bank’s profitability and efficiency are driven by temporary macro factors, raising concerns about sustainability. The study emphasises the need for regulatory harmonisation, capital market development, and integration to enhance the competitiveness and resilience of Europe’s banking sector. It also stresses the importance of considering both quantitative and qualitative indicators to better capture banks’ contributions to the economy and overall welfare. Source : © European Union, 2025 - EP Read more
