Banking in Europe (eBook)

Acknowledgements 6
Introduction 7
Contents 10
List of Figures 11
List of Tables 13
Chapter 1: Bank Management After the Great Crisis 14
1.1 Introduction 14
1.2 Bank Business Model: What Has Been Changing in the Fintech Era 15
1.3 Regulatory Framework: Opportunities and Threats for the Banking System 19
1.4 Financial and Economic Environment: Surviving Squeezed Margins 25
1.5 Cost Efficiency and Credit Quality: Merging Soft and Hard Information 28
1.6 Conclusions 32
References 33
Chapter 2: Bank Profitability: Measures and Determinants 36
2.1 Introduction 36
2.2 Profitability Measures: ROE, ROA and NIM 41
2.2.1 ROE 41
2.2.2 ROA 45
2.2.3 NIM 47
2.3 Risk-Return Measures 49
2.4 Determinants of Bank Profitability: A Literature Review 55
2.4.1 Internal Determinants of Profitability 55
2.4.2 External Determinants of Profitability 60
2.5 Conclusions 62
References 63
Chapter 3: Profitability of European Banks: A Quantitative Analysis 67
3.1 Introduction 67
3.2 The Macroeconomic and Competitive Context of Reference 68
3.3 Some Aggregated Data on the Subject of Bank Financials 76
3.4 European Banks During the Crisis: Cluster and Panel Analyses 81
3.4.1 Cluster Analysis 82
3.4.2 Panel Analysis 87
3.5 Conclusions 93
References 94
Chapter 4: Making Profits in the New Competitive and Regulatory Framework 95
4.1 Introduction 95
4.2 The Quest for Profitability After the Great Crisis: A Proactive Approach 96
4.3 Reshaping the Business Model 100
4.4 The Quest for Equilibrium Between Profitability and Compliance to the Regulation 106
4.5 Dealing with Old and New Competitors: From the Brick-and-Mortar Branch to Fintech 109
4.6 Conclusions 112
References 113
Final Remarks 118
Index 121