Speakers
Objectives
The objective of this exchange of views is to identify the policy priorities for addressing the profitability gap of European banks, in an international environment where
(i) there is an unlevel playing field for the implementation of Basel regulations,
(ii) where interest rates are structurally lower than in the United States,
(iii) in a European context where economic and fiscal divergences have increased between the major countries,
(iv) where, despite the existence of a single supervisory authority and a European framework for bank resolution, national authorities continue to ring fence capital and liquidity requirements for pan European banking groups,
(v) and where some governments are reluctant to accept cross-border mergers and often express their desire to ensure that local savings only finance local investments.The current economic and geopolitical outlook is likely to further exacerbate this gap at the detriment of the EU economies. Speakers will be invited to share their views on whether we should be resigned to this situation or whether there is room for change and how to achieve it.
Points of discussion
- Why is the profitability of European banks, which has improved over the past two years, still lower in relative terms than that of their international competitors?
- What steps can be taken to reverse this trend? What should be the priorities?