How COVID and War Have Reshuffled the European Banking Sector
How COVID and War Have Reshuffled the European Banking Sector
Author(s): Patryk DybekSubject(s): Economy, Supranational / Global Economy, Russian war against Ukraine
Published by: Polskie Stowarzyszenie Badań Wspólnoty Europejskiej PECSA
Keywords: Banking system; stability; COVID; financial crisis; profitability; liquidity
Summary/Abstract: The stability of the European banking system has been recently tested by the COVID-19 pandemic in 2020 and then by the Russian aggression against Ukraine in 2022. Both events have forced the European Central Bank to implement many recovery measures. Despite having vastly different fundamentals, those events have led to the new economic reality with high interest rates and return on equity below the cost of equity for most European banks. The paper aims to assess how pandemic and war impacted the banking sector and its stability. The analysis relies on data provided by public international authorities, global banking advisors, and open-access databases such as Eurostat. The overall, conclusion is that these neither events pushed the entire sector to the brink of collapse. The primary reason for this outcome was the implementation of measures established following the global financial crisis 2008.
Journal: Review of European Affairs
- Issue Year: 7/2023
- Issue No: 1
- Page Range: 13-25
- Page Count: 13
- Language: English
