Investigating Diversity in the Banking Sector in Europe: The Performance and Role of Savings Banks

CEPS Paperbacks

214 Pages Posted: 3 Jul 2009

See all articles by Rym Ayadi

Rym Ayadi

HEC Montreal

Reinhard H. Schmidt

Goethe University Frankfurt - Chair of Banking and Finance

Santiago Carbo-Valverde

Bangor Business School; Universidad Complutense de Madrid (UCM) - Colegio Universitario de Estudios Financieros (CUNEF)

Emrah Arbak

Centre for European Policy Studies (CEPS); University of Lyon II - Groupe dAnalyse et de Théorie Economique (GATE)

Francisco Rodriguez-Fernandez

University of Granada - Department of Economic Theory and History

Date Written: June 26, 2009

Abstract

In the aftermath of the financial crisis, the foundations of modern and innovative financial systems developed over decades have suffered serious damage. This has triggered massive state interventions and has led authorities to revamp the regulatory structures and frameworks. While many voices have called for a return to more traditional approaches to banking and finance, no one has argued the merits of diversity. This book investigates the merits of a diverse banking system with a special focus on the performance and role of savings banks in selected European countries where they are still prominent (Austria, Germany and Spain) and where they have progressively disappeared (Belgium and Italy). The theoretical and empirical arguments that are developed in this book tend to support the view that it is economically and socially beneficial to have ‘dual bottom-line’ institutions, such as savings banks. For those who accept this premise, it would suggest that policy-makers should not take or support actions that could jeopardise this valuable element of the financial system in various countries in Europe and of the emerging integrated European financial system.

Keywords: banking regulation, supervision

Suggested Citation

Ayadi, Rym and Schmidt, Reinhard H. and Carbo-Valverde, Santiago and Arbak, Emrah and Rodriguez-Fernandez, Francisco, Investigating Diversity in the Banking Sector in Europe: The Performance and Role of Savings Banks (June 26, 2009). CEPS Paperbacks. Available at SSRN: https://ssrn.com/abstract=1427753 or http://dx.doi.org/10.2139/ssrn.1427753

Rym Ayadi (Contact Author)

HEC Montreal ( email )

3000, Chemin de la Côte-Sainte-Catherine
Montreal, Quebec H2X 2L3
Canada

Reinhard H. Schmidt

Goethe University Frankfurt - Chair of Banking and Finance ( email )

Mertonstr. 17
P.O. Box 11932
60054 Frankfurt (Main)
Germany

Santiago Carbo-Valverde

Bangor Business School ( email )

Bangor Business School
College Road
Gwynedd LL57 2DG, Wales LL57 2DG
United Kingdom

Universidad Complutense de Madrid (UCM) - Colegio Universitario de Estudios Financieros (CUNEF) ( email )

Serrano Anguita 9
Madrid, Madrid 28004
Spain

Emrah Arbak

Centre for European Policy Studies (CEPS) ( email )

1 Place du Congrès
Brussels, 1000
Belgium

University of Lyon II - Groupe dAnalyse et de Théorie Economique (GATE) ( email )

93, chemin des Mouilles
Ecully, 69130
France

Francisco Rodriguez-Fernandez

University of Granada - Department of Economic Theory and History ( email )

Granada
Spain

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