Strategic Challenges in European Banking

by Edward P. M. Gardener; Joe Falzon

• ISBN13: 9780333734056
• ISBN10: 033373405X
• Format: Nonspecific Binding
• Copyright: 1999-09-21
• Publisher: Springer Nature

Table of Contents

List of Tables	p. xi
List of Figures	p. xiii
Preface and Acknowledgements	p. xiv
Notes on the Contributors	p. xviii
Synopses of Contributions	p. xxiii
Introduction: The Malta Connection	p. 1
Background	p. 1
Sponsors	p. 1
Malta's role in Economic and Monetary Union	p. 2
Cost Economies and Efficiency in EU Banking Systems	p. 8
Introduction	p. 9
Scale and scope economies: a brief literature review	p. 9
Methodology	p. 12
Data and results	p. 16
Scale economies	p. 16
Expansion path subadditivity	p. 20
X-efficiency	p. 22
Conclusion	p. 30
Relative Efficiencies and Productivity Indices: An Empirical Investigation of the Banking Sectors in Eight European Countries	p. 41
Summary	p. 41
Introduction	p. 41
Total factor productivity: an activity analysis approach	p. 42
Measuring differences and changes in productivity	p. 42
Basic concepts	p. 43
Defining and calculating Malmquist indices	p. 45
Application to the EU banking sector	p. 47
Results of the analysis	p. 51
Data distributions	p. 51
Malmquist indices and decompositions	p. 51
Relative efficiencies and scale efficiencies	p. 57
Efficiencies relative to a European best-practice frontier	p. 59
Conclusions and limitations	p. 63
Data limitations	p. 63
Methodology	p. 64
Conclusion	p. 64
The Effects of Alternative Financial System Models on Corporate Governance	p. 70
Introduction	p. 70
Ownership, concentration and distribution of equity	p. 73
Debt ownership	p. 77
The payoffs structure	p. 79
Financial organisation model and real economy	p. 82
Corporate capital investment	p. 84
RandD expenses	p. 84
The structure of assets	p. 86
Economic performance and volatility	p. 88
Final remarks	p. 89
Market Share Dynamics and Instruments of Competition in the Portuguese Deposits Market	p. 112
Introduction	p. 113
The model	p. 113
Estimation and data	p. 115
Data	p. 115
Estimation	p. 116
Results	p. 117
Static model	p. 117
Dynamic model	p. 118
Conclusions	p. 120
Specialisation and Competitiveness of the Spanish Savings Banks, 1984-95	p. 121
The savings banks and the new competition of the single market	p. 121
The specialisation of the savings banks: basic features	p. 125
Specialisation and evolution of markets	p. 131
Are there advantages in the specialisation of the savings banks?	p. 135
Specialisation in means of payment	p. 140
Efficiency and market shares	p. 143
Perspectives	p. 146
The Future of Relationship Banking	p. 152
Why a study of relationship banking?	p. 152
Relationship forms	p. 155
Traditional relationship banking	p. 156
New developments in relationship banking	p. 158
How to identify and to stimulate relationships that are profitable	p. 160
How to define and measure relationship profitability	p. 162
Conclusions	p. 170
The Societal Responsibility of Banks: An Introduction to a Societal-Oriented Bank Management Theory	p. 174
Societal-oriented bank management as a research topic	p. 174
Societal responsibility in business administration	p. 174
Requirements of bank management vis-a-vis a theory of societal responsibility	p. 175
Alternative approaches to the societal responsibility of banks	p. 176
The problem of realisation of the concept of societal responsibility	p. 179
Adaptive Strategies by European Savings Banks: A Case Study of Spain	p. 181
Introduction	p. 181
Structural and strategic analysis	p. 182
Structural overview	p. 182
Select performance indicators	p. 183
Broad strategic shifts: the question of scale	p. 187
Savings banks in the New Europe	p. 188
Adaptive strategies summarised	p. 190
Adaptive strategies: implications for Spain	p. 194
Spanish savings banks compared with the EU and the Spanish private banks	p. 194
Environmental and strategic issues of the Spanish savings banks	p. 198
Implications, recommendations and policy issues for Spain	p. 201
Conclusions	p. 208
Public Banks in France: Current Problems and Prospective Issues	p. 211
Introduction	p. 211
Public banks in France: a brief overview	p. 212
The regulatory framework and competitive environment	p. 213
The poor performance of the public banks: some preliminary reflections	p. 215
Restructuring the French credit system is now unavoidable	p. 220
Conclusion	p. 222
Economic and Monetary Union and Single Currency in Europe: Repercussions on Capital Markets and Stock Exchanges	p. 225
Preliminary remarks	p. 225
Main effects of EMU	p. 226
Foreign exchange markets	p. 228
Bond markets	p. 229
Equity markets	p. 232
Derivatives markets	p. 234
Integration and concentration of securities markets	p. 237
Strategies of market-managing bodies	p. 240
The impact on the strategies and the organisation of intermediaries	p. 242
Concluding remarks	p. 245
European Monetary Union: Issues in Supervision	p. 248
Introduction	p. 248
The consequences of EMU for the structure of and competition within the European financial system	p. 251
The implications in terms of supervision	p. 257
The state of the art in supervision	p. 260
The EU directives	p. 260
Supervision procedures	p. 263
The EU monetary authorities and the supervisory function	p. 264
Crisis management: the function of lender of last resort	p. 267
Investment services	p. 269
Unsolved problems	p. 270
The Role of Independence in the European System of Central Banks: A Sufficient Condition for a Robust European Monetary Union?	p. 276
Introduction	p. 276
ESCB structure	p. 277
Central Bank independence	p. 280
ESCB independence	p. 282
Price stability	p. 284
ESCB reputation	p. 285
Political consensus	p. 288
Conclusions	p. 290
EU, EMU and the Central and Eastern European Countries	p. 293
The transition to EMU	p. 293
EMU convergence criteria	p. 294
The prospects for EMU	p. 295
Central and Eastern Europe and EMU	p. 298
Hungary and EMU	p. 299
Summary	p. 301
EMU, Adjustment and the Peripheral Regions: An Overview of Policy Issues	p. 303
Regional differences	p. 303
Maastricht criteria	p. 306
Real criteria	p. 307
Characteristics of a currency area	p. 307
Benefits and costs of EMU	p. 308
EMU and potential regional effects	p. 311
Fiscal policy in a monetary union	p. 312
Stabilisation under EMU	p. 313
Conclusion	p. 313
Index	p. 317
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