The impact of banking behaviour on monetary strategy in Europe

Manfred Borchert

No 13, Beiträge zur angewandten Wirtschaftsforschung from University of Münster, Center of Applied Economic Research Münster (CAWM)

Abstract: At present, Western European banks are increasingly branching out into asset management as well as the consulting business, which cannot be influenced directly by monetary controls. We have therefore conducted a factor analysis of banks' balance-sheet items, and we have also plotted figures from banks' income statements. Our analyses fulfil a triple purpose. First, they shed much light on the positioning strategies deployed by European banks. Secondly, they reveal various tendencies in respect of the refinancing strategies that are adopted when credits are granted to non-banks. Thirdly, they facilitate an assessment of the effectiveness of monetary policy. There is clear evidence that the European Central Bank's money supply policy will prove progressively less efficient as banks resort increasingly to refinancing by assets and continue to expand their banking services by building up their consulting businesses.

Keywords: Banking structure; Banking market; Banks' business strategies (search for similar items in EconPapers)
JEL-codes: E50 E51 E58 G21 (search for similar items in EconPapers)
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/51418/1/67224912X.pdf (application/pdf)

Related works:
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:zbw:cawmbg:13

Access Statistics for this paper

More papers in Beiträge zur angewandten Wirtschaftsforschung from University of Münster, Center of Applied Economic Research Münster (CAWM) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().