European banks after the global financial crisis: peak accumulated losses, twin crises and business models

Leo de Haan and Jan Kakes

Journal of Banking Regulation, 2020, vol. 21, issue 3, No 1, 197-211

Abstract: Abstract This paper takes stock of European banks’ accumulated losses since 2007 and relates these to bank characteristics. In line with previous studies, we find that large, market-oriented banks were particularly hit by the 2007–2009 global financial crisis, whereas smaller, retail-oriented banks weathered these years relatively well. In subsequent years, however, the picture reversed and retail-oriented banks were most affected. Over the entire period, medium-sized banks suffered most losses and often needed state aid. This suggests that measures to contain systemic risk, such as capital surcharges and bail-in requirements, are not only relevant for the largest banks but also for smaller institutions.

Keywords: Bank profitability; Business model; Financial crisis (search for similar items in EconPapers)
JEL-codes: G01 G21 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (4)

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DOI: 10.1057/s41261-019-00107-y

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