European Banking: Enlargement, Structural Changes and Recent Developments PDF
Preview European Banking: Enlargement, Structural Changes and Recent Developments
PalgraveMacmillanStudiesinBankingandFinancialInstitutions SeriesEditor:ProfessorPhilipMolyneux The Palgrave Macmillan Studies in Banking and Financial Institutions are international in ori- entation and include studies of banking within particular countries or regions, and studies of particularthemessuchasCorporateBanking,RiskManagement,MergersandAcquisitions,etc. Thebooks’focusisonresearchandpractice,andtheyincludeup-to-dateandinnovativestudieson contemporarytopicsinbankingthatwillhaveglobalimpactandinfluence. Titlesinclude: SteffenE.Andersen THEEVOLUTIONOFNORDICFINANCE SethApati THENIGERIANBANKINGSECTORREFORMS PowerandPolitics VittorioBoscia,AlessandroCarrettaandPaolaSchwizer COOPERATIVEBANKINGINEUROPE:CaseStudies RobertoBottiglia,ElisabettaGualandriandGianNereoMazzocco(editors) CONSOLIDATIONINTHEEUROPEANFINANCIALINDUSTRY DimitrisN.Chorafas CAPITALISMWITHOUTCAPITAL DimitrisN.Chorafas SOVEREIGNDEBTCRISIS TheNewNormalandtheNewlyPoor DimitrisN.Chorafas FINANCIALBOOMANDGLOOM TheCreditandBankingCrisisof2007–2009andBeyond ViolaineCousin BANKINGINCHINA VincenzoD’ApiceandGiovanniFerri FINANCIALINSTABILITY ToolkitforInterpretingBoomandBustCycles PeterFalushandRobertL.CarterOBE THEBRITISHINSURANCEINDUSTRYSINCE1900 TheEraofTransformation FrancoFiordelisi MERGERSANDACQUISITIONSINEUROPEANBANKING FrancoFiordelisi,PhilipMolyneuxandDanielePreviati(editors) NEWISSUESINFINANCIALANDCREDITMARKETS FrancoFiordelisi,PhilipMolyneuxandDanielePreviati(editors) NEWISSUESINFINANCIALINSTITUTIONSMANAGEMENT KimHawtrey AFFORDABLEHOUSINGFINANCE JillM.Hendrickson REGULATIONANDINSTABILITYINU.S.COMMERCIALBANKING AHistoryofCrises OttoHieronymi(editor) GLOBALIZATIONANDTHEREFORMOFTHEINTERNATIONALBANKINGANDMONETARY SYSTEM SvenJanssen BRITISHANDGERMANBANKINGSTRATEGIES Alexandros-AndreasKyrtsis(editor) FINANCIALMARKETSANDORGANIZATIONALTECHNOLOGIES SystemArchitectures,PracticesandRisksintheEraofDeregulation CaterinaLucarelliandGianniBrighetti(editors) RISKTOLERANCEINFINANCIALDECISIONMAKING RomanMatousek(editor) MONEY,BANKINGANDFINANCIALMARKETSINCENTRALANDEASTERNEUROPE 20YearsofTransition PhilipMolyneux(editor) BANKPERFORMANCE,RISKANDFIRMFINANCING PhilipMolyneux(editor) BANKSTRATEGY,GOVERNANCEANDRATINGS ImadA.Moosa THEMYTHOFTOOBIGTOFAIL SimonMouattandCarlAdams(editors) CORPORATEANDSOCIALTRANSFORMATIONOFMONEYANDBANKING BreakingtheSerfdom AndersÖgren(editor) THESWEDISHFINANCIALREVOLUTION ÖzlemOlgu EUROPEANBANKING Enlargement,StructuralChangesandRecentDevelopments RamkishenS.Rajan EMERGINGASIA EssaysonCrises,CapitalFlows,FDIandExchangeRate YasushiSuzuki JAPAN’SFINANCIALSLUMP CollapseoftheMonitoringSystemunderInstitutionalandTransitionFailures RuthWandhöfer EUPAYMENTSINTEGRATION TheTaleofSEPA,PSDandOtherMilestonesAlongtheRoad Thefulllistoftitlesavailableisonthewebsite: www.palgrave.com/finance/sbfi.asp PalgraveMacmillanStudiesinBankingandFinancialInstitutions SeriesStandingOrderISBN978–1–4039–4872–4 (outsideNorthAmericaonly) Youcanreceivefuturetitlesinthisseriesastheyarepublishedbyplacingastandingorder.Please contactyourbookselleror,incaseofdifficulty,writetousattheaddressbelowwithyournameand address,thetitleoftheseriesandtheISBNquotedabove. CustomerServicesDepartment,MacmillanDistributionLtd,Houndmills,Basingstoke,Hampshire RG216XS,England European Banking Enlargement, Structural Changes and Recent Developments Özlem Olgu AssistantProfessorinAccountingandFinance,KoçUniversity,Turkey Palgrave macmillan ©ÖzlemOlgu2011 Softcoverreprintofthehardcover1stedition2011978–0–230–23171–9 Allrightsreserved.Noreproduction,copyortransmissionofthis publicationmaybemadewithoutwrittenpermission. Noportionofthispublicationmaybereproduced,copiedortransmitted savewithwrittenpermissionorinaccordancewiththeprovisionsofthe Copyright,DesignsandPatentsAct1988,orunderthetermsofanylicence permittinglimitedcopyingissuedbytheCopyrightLicensingAgency, SaffronHouse,6-10KirbyStreet,LondonEC1N8TS. Anypersonwhodoesanyunauthorizedactinrelationtothispublication maybeliabletocriminalprosecutionandcivilclaimsfordamages. Theauthorhasassertedherrighttobeidentified astheauthorofthisworkinaccordancewiththeCopyright, DesignsandPatentsAct1988. Firstpublished2011by PALGRAVEMACMILLAN PalgraveMacmillanintheUKisanimprintofMacmillanPublishersLimited, registeredinEngland,companynumber785998,ofHoundmills,Basingstoke, HampshireRG216XS. PalgraveMacmillanintheUSisadivisionofStMartin’sPressLLC, 175FifthAvenue,NewYork,NY10010. PalgraveMacmillanistheglobalacademicimprintoftheabovecompanies andhascompaniesandrepresentativesthroughouttheworld. Palgrave®andMacmillan®areregisteredtrademarksintheUnitedStates, theUnitedKingdom,Europeandothercountries. ISBN978-1-349-31213-9 ISBN978-0-230-30591-5(eBook) DOI10.1057/9780230305915 Thisbookisprintedonpapersuitableforrecyclingandmadefromfully managedandsustainedforestsources.Logging,pulpingandmanufacturing processesareexpectedtoconformtotheenvironmentalregulationsofthe countryoforigin. AcataloguerecordforthisbookisavailablefromtheBritishLibrary. LibraryofCongressCataloging-in-PublicationData Olgu,Özlem,1979– Europeanbanking:enlargement,structuralchangesandrecent developments/ÖzlemOlgu. p. cm. Includesindex. 1. Banksandbanking—EuropeanUnioncountries. 2. Financial servicesindustry—EuropeanUnioncountries. I. Title. HG2974.O442011 332.1094—dc22 2011008036 10 9 8 7 6 5 4 3 2 1 20 19 18 17 16 15 14 13 12 11 To my husband, Özgur Akdeniz Contents ListofFigures xi ListofTables xiv Preface xvii ListofAbbreviations xix 1 Introduction 1 2 CreatingaFunctioningEuropeanUnion 7 Introduction 7 OriginsoftheEU,EMUandECB 7 OriginsoftheEuropeanUnion(EU) 8 OriginsoftheEuropeanCentralBank(ECB)anditsrole 9 OriginsoftheEconomicandMonetaryUnion(EMU) 12 Deregulationduringthe1980sand1990s 16 Thenewcurrency:theeuro 17 Introductionoftheeuro 17 Originsoftheeurosystem 19 Pricestabilityoftheeuro 21 Conclusion 22 3 EnlargementoftheEuropeanUnion 23 Introduction 23 HistoryoftheEuropeanUnionenlargement 23 Euro-areaenlargement 26 Recentprogressincountriesundergoingaccession negotiations:Croatia,TurkeyandtheFYROM 29 Croatia 29 Turkey 30 TheFormerYugoslavRepublicofMacedonia(FYROM) 31 Recentprogressinfuturecandidatecountries 32 Albania 32 BosniaandHerzegovina(BiH) 33 Montenegro 34 Serbia 35 Kosovo 37 Conclusion 38 vii viii Contents 4 MacroeconomicStructureoftheEuropeanUnion 39 Introduction 39 PopulationandimmigrationintheEU 39 Populationbyage:isEuropebecomingacontinentfor olderpeople? 41 Immigration 44 MacroeconomicstructureoftheEUmembercountries 45 SizeoftheEUeconomies 45 TrendsinrealGDPgrowth 47 TrendsinGDPpercapita 51 Trendsininflationrates 53 Trendsininterestrates 54 Trendsineuroexchangerates 60 Annualemploymentgrowth 60 Foreigndirectinvestment(FDI) 67 MacroeconomicstructureoftheEUcandidatecountries 69 EconomicgrowthintheWesternBalkans 70 InflationratesintheWesternBalkans 73 PublicdebtintheWesternBalkans 74 ExternaldebtintheWesternBalkans 75 FDIintheWesternBalkans 75 Conclusion 77 Appendix 79 5 RecentStructureofEuropeanBanking 87 Introduction 87 RegulatorydevelopmentsintheEUbankingsector 87 StructuralchangesintheEUbankingsector 90 Trendsinnumberofbanks 90 BranchsystemsoftheEUbankingsector 91 EmploymentintheEUbankingsector 94 ConsolidationintheEUbankingsector 94 MarketconcentrationintheEUbankingsector 101 Snapshotofcapacityindicators 107 FinancialinnovationintheEUbankingsector 110 Conclusion 117 Appendix 119 6 PerformanceofEuropeanBanks 122 Introduction 122 FinancialintegrationintheEU 123 Europeanfinancialmarkets 124 Contents ix Euro-areaequitymarkets 124 Europeanmoneyandbondmarkets 126 Europeansecuritiesmarket 127 EfficiencyandcompetitionintheEuropean bankingsector 131 Efficiencyindicators 132 Liquidityindicators 136 Assetquality 138 ProfitsandbalancesheetstructureoftheEuropean commercialbanks 140 TotalassetstoGDP 140 Capitaladequacy 144 Totalloans 145 Totaldeposits 148 IncomeandcoststructureoftheEuropean commercialbanks 150 Conclusion 152 Appendix 154 7 GlobalFinancialCrisisandEuropeanBanking 173 Introduction 173 Causesoftheglobalfinancialcrisis2008–2009 173 Employmentduringtherecession 180 Globalcontagion 182 GlobalfinancialcrisisandtheEU 183 Interestrates 184 Currencyswapfacilities 184 Depositorguarantees 185 TheEuropeanFrameworkforAction(EFA) 186 Europeaneconomicrecoveryplan 188 Financialhelpfortroubledcountries 188 RisksfacingtheEuropeanbankingsector 196 Conclusion 197 8 TurkeyasanAccessionCountry 199 Introduction 199 RestructuringstrategyofTurkisheconomy andbankingsector 199 InterestofforeigninvestorsintheTurkishbankingsector 207 FDIinTurkeyvsCentralandEasternEuropean countries 212 Turkey’smembershipnegotiations 213 x Contents ProgresssincetheAnkaraAgreement 214 BaselII 216 TurkeymovestowardsEUaccession 217 Conclusion 225 9 ConcludingRemarks 227 Notes 232 Bibliography 236 Index 246
The list of books you might like
