The Banking Sector and Recovery in the EU Economy

Dr Tatiana Fic () and Ray Barrell

No 374, National Institute of Economic and Social Research (NIESR) Discussion Papers from National Institute of Economic and Social Research

Abstract: Banks within Europe have become larger and more international. We use a micro data set to investigate the impact of size on banks Net Interest Margin and show larger banks lower borrowing costs for firms which raises sustainable output. We use NiGEM to look at the impact of banks becoming smaller and moving back into their home territory. We first investigate the impacts on output in large and small countries showing that the effects are generally larger in small countries, and also larger in economies that are more dependent on bank finance for their business investment decisions. If recent increases in sovereign spreads propagate into the banking system they will cause a sharp slow down in activity in Greece, Spain and Portugal and also in Ireland and Italy.

Date: 2011-01
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://www.niesr.ac.uk/wp-content/uploads/2021/10/dp374_0-2.pdf

Related works:
Journal Article: The Banking Sector and Recovery in the EU Economy (2011)
Journal Article: THE BANKING SECTOR AND RECOVERY IN THE EU ECONOMY (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nsr:niesrd:374

Access Statistics for this paper

More papers in National Institute of Economic and Social Research (NIESR) Discussion Papers from National Institute of Economic and Social Research 2 Dean Trench Street Smith Square London SW1P 3HE. Contact information at EDIRC.
Bibliographic data for series maintained by Library & Information Manager ().