2005年-ECB欧洲央行_EU_banking_structures_68页_826kb

EU Banking Structures Summary (October 2005)

Core Content

This report provides an overview of structural developments in the EU banking sector during 2004 and early 2005. It includes analysis of regulatory changes, consolidation trends, market structures, internationalisation, and financial stability implications.

Main Points

Regulatory Developments

• The adoption of new International Financial Reporting Standards (IFRS) and the finalisation of Basel II were key regulatory initiatives in 2004 and early 2005.
• IFRS was expected to increase income and balance sheet volatility, which raised concerns about financial stability.
• The European Commission introduced the Green Paper on Financial Services Policy, aiming to simplify regulations and promote supervisory convergence.
• Corporate governance rules were strengthened in many EU countries, enhancing accountability and transparency in the sector.

Consolidation

• The number of credit institutions in the EU has been declining since 1997, with a further drop of 2.8% in 2004.
• Total number of EU credit institutions in 2004 was 8,374.
• M&A activity has been decreasing since 1999, but cross-border M&A has increased, accounting for 30% of the number and 24% of the value of all deals.
• Consolidation may reduce reliance on single regions or product lines, potentially improving financial stability in the long term, but also increases systemic risk as institutions grow larger.

Market Structure

• Many smaller EU Member States show high concentration in the banking sector, measured by the share of the five largest institutions in total assets.
• Concentration remains relatively low in Germany, Italy, Luxembourg, and the UK.
• The Herfindahl index indicates monopolistic competition in most EU countries.
• Some studies suggest that a more concentrated market structure can be a result of economies of scale and scope, as larger players tend to be more efficient.

Internationalisation and Integration

• Cross-border banking M&A has been relatively limited in the EU, but regional clusters have formed in the Benelux, Nordic, and Southern European countries.
• In Central and Eastern Europe, clustering has also occurred, especially involving banks from Germany, Austria, Italy, Sweden, and Belgium.
• The share of foreign bank branches and subsidiaries in the EU increased from 23.4% in 2003 to 24.7% in 2004.
• The New Member States (NMS) are particularly characterised by high levels of foreign ownership, with 71% of the NMS banking sector being foreign-controlled (63.5% by EEA banks).
• Subsidiaries are preferred for their flexibility in international tax and deposit insurance matters, and they allow for "ring-fencing" of losses.

Key Information

• Funding Structure: EU banks are becoming less reliant on deposits and more diversified, with a shift towards capital market instruments.
• Consumer Lending: The market has seen expansion in both product variety and number of providers, although cross-border integration remains weak.
• Mortgage Markets: Intense competition has been observed, with potential risks if standards in credit risk assessment are lowered or margins eroded.
• Syndicated Loans: The market has grown significantly, with contracts becoming more standardised, contributing to financial integration.
• Financial Stability: While consolidation may improve efficiency and diversification, it also raises concerns about systemic risk and the impact of intense competition on risk assessment standards.

Competitive Conditions

• Consumer Lending: Intense competition has led to a broader range of products and providers, though cross-border integration is limited due to natural barriers like language and culture.
• Mortgage Markets: Competition has intensified, especially within domestic markets. Factors such as national rules, culture, and language affect foreign presence, and concerns exist about the potential threat to financial stability from reduced margins and lower credit risk standards.

International Activities of Large EU Banks

• A group of around 40 large EU banks is typically better capitalised, more profitable, and less risky than national competitors.
• Higher foreign presence is positively associated with size and negatively with provisions and capital buffers.
• Factors such as market profitability, safety buffers, and concentration levels influence foreign presence in local banking markets.
• Cultural and language barriers, as well as labor market rigidities, hinder cross-border M&A in Europe.

Conclusion

The EU banking sector is becoming more integrated and competitive over time. However, challenges remain, particularly in consumer lending and mortgage markets, where intense competition may lead to reduced margins and lower credit risk standards. Regulatory changes, including IFRS and Basel II, have the potential to enhance competitiveness and financial stability. Cross-border M&A activity is increasing, but it faces obstacles due to differences in regulations, culture, and language. The report also highlights the importance of corporate governance in maintaining financial stability and improving access to capital.