2005年-ECB欧洲央行_Banking_structures_in_the_new_EU_Member_States_44页_896kb

Summary of Banking Structures in the New EU Member States (NMSs)

Core Content

This report, prepared by the ESCB Banking Supervision Committee, provides an in-depth analysis of the banking structures in the new EU Member States (NMSs) following their accession to the EU in 2004. The study highlights the common structural features among the NMSs, which have undergone similar transformations in a short period. It also addresses macroeconomic and regulatory developments, balance sheet performance, and policy implications for financial stability.

Main Points

Macroeconomic Environment

• The NMSs have made significant progress in real and nominal convergence.
• GDP growth in NMSs has outpaced that of the EU-15, with an average growth rate of 3.2% between 1999 and 2003, compared to 2.0% in the EU-15.
• Inflation in NMSs has dropped from double-digit levels in 1998 to euro area levels in 2003.
• However, some countries have experienced a reversal of the disinflation process in 2004.
• Fiscal imbalances and current account deficits remain a concern in several NMSs.

Regulatory Environment and Supervision

• A capacity for effective prudential regulation and supervision has been developed in the NMSs.
• In six NMSs, supervision is sectoral (banks, insurance, etc.), while in four, a single authority oversees the entire financial sector.
• All NMSs have a single authority for commercial bank supervision, similar to the EU-15.
• The implementation of key European banking directives has been mostly completed, with some areas requiring further alignment with EU regulations.

Structural Characteristics of Banking Sectors

• Financial intermediation levels in NMSs remain low compared to the EU-15.
• Bank finance dominates the financial structure, with commercial banks holding about 90% of total banking sector assets.
• Foreign ownership is significant, with an average of 72% of NMS bank assets being foreign-owned.
• NMS banks have a limited presence abroad, mainly through branches in neighboring regions.
• The banking sector in NMSs is highly concentrated, with the top five banks holding 72% of total assets.
• Concentration and margins are negatively correlated, suggesting that high concentration does not necessarily lead to anticompetitive behavior.

Balance Sheet Structure and Performance

• The loan-to-asset ratio in NMS banks is catching up with EU-15 banks due to rapid lending growth.
• Household and mortgage lending have grown rapidly, but non-financial corporate loans still make up the largest share (52% in 2003).
• Customer deposits are the primary funding source for NMS banks, accounting for 66% of total assets.
• The share of foreign currency assets and liabilities varies across NMSs, with countries under currency boards or basket pegs having the highest foreign currency exposure.
• Banks in NMSs generally improved performance in 2003, with an average solvency ratio of 13.6%.
• Non-performing loans (NPLs) remain higher in NMSs than in the EU-15, reflecting differences in economic conditions and loan classification rules.

Key Information

Policy Issues and Challenges

• Financial Stability: High foreign ownership may have a stabilizing effect on credit supply, though caution is needed due to the transition period.
• Risk Transmission: Ownership links between NMSs and EU-15 countries may create asymmetric risks, with shocks from EU-15 more likely to affect NMS banking systems.
• Competition: Increased competition from EU integration could put pressure on margins and profitability, but may also be offset by higher lending volumes and non-interest income growth.
• Regulatory Challenges: The presence of foreign branches or subsidiaries could lead to regulatory complexities, especially in terms of cross-border supervision. This is exemplified by the Nordea case.
• Coordination Needs: Enhanced coordination and information-sharing between supervisory authorities in NMSs and EU-15 countries is essential to manage risks effectively.

Outlook

• Financial deepening in NMSs is accelerating, which is a natural part of the real convergence process.
• While this has positive implications for economic development, it also raises concerns about excessive credit growth and the need for prudential regulation.
• Continued fiscal consolidation is critical in countries with high deficits, and improvements in financial supervision and cross-border cooperation are necessary for long-term stability.

Conclusion

The banking structures in the NMSs reflect a mix of high foreign ownership, limited domestic presence, and significant concentration. These features have implications for financial stability, competition, and regulatory coordination. The report emphasizes the importance of maintaining adequate solvency buffers, improving regulatory frameworks, and enhancing cooperation between supervisory authorities to ensure sustainable development of the NMS banking sectors.

Annex and Country Abbreviations

• Country Abbreviations:
  • AT: Austria
  • BE: Belgium
  • CY: Cyprus
  • CZ: Czech Republic
  • DE: Germany
  • DK: Denmark
  • EE: Estonia
  • ES: Spain
  • FI: Finland
  • FR: France
  • GR: Greece
  • HU: Hungary
  • IE: Ireland
  • IT: Italy
  • LT: Lithuania
  • LU: Luxembourg
  • LV: Latvia
  • MT: Malta
  • NL: Netherlands
  • PL: Poland
  • PT: Portugal
  • SE: Sweden
  • SI: Slovenia
  • SK: Slovakia
  • UK: United Kingdom
  • EU: European Union (25 countries after enlargement)
  • EU-15: European Union (15 countries before enlargement)
  • NMS: New Member States (ten countries marked with *)

Tables Overview

• Table 1: Policy restrictiveness and banking reform indicators for NMSs (1997–2003).
• Table 2: Legislative and supervisory alignment of NMSs with the EU acquis communautaire (end-2003).

Notes

• The report underscores the importance of addressing structural challenges while ensuring financial stability and integration with the EU financial system.
• It highlights the need for continuous monitoring and policy adjustments to support the sustainable development of NMS banking sectors.