INEFFICIENCY OF BANKING REGULATION IN EUROPE
INEFFICIENCY OF BANKING REGULATION IN EUROPE

Author(s): Myriam J. Maier
Subject(s): Economy, Business Economy / Management, Accounting - Business Administration
Published by: ASERS Publishing
Keywords: European banking; efficiency; regulation; risk; performance; inefficiency
Summary/Abstract: This chapter aims at investigating the need for more efficiency in the European banking sector with particular reference on the impact of bank supervisory and regulatory policies on different aspects of banking performance and cost efficiency. The chapter uses inter-temporal links between capital regulations, bank efficiency, and risk in order to depict the inefficiencies in regulating the European banking industry. The review emphasizes on the importance of more efficiency in regulating the banking sector, which has become more competitive and integrated. The need for more efficiency has been related to the efforts by regulatory authorities to encourage banking institutions to work towards efficient production and operation functions. The impact of the increasing regulation inefficiency in European banking has been evaluated relative to risk prevalence, as well as deregulation standards.

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