As the pandemic hit the economy, businesses and households across the EU benefited from a resilient European banking ecosystem. A ‘new normal’ in European banking is taking shape, this time with banks as part of the solution. Yet, the industry is encumbered with many of the pre-existing challenges: low returns, high cost of capital, negative interest rates, the prospect of even tighter capital requirements and a fragmented EU financial services market keep Europe’s banking sector from being an attractive place for global investors and from competing globally with big-tech challengers. How does the ‘new normal’ differ from the ‘old normal’?
European Banking Federation
The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from across Europe, including all member states of the European Union. The EBF is committed to a thriving European economy that is underpinned by a stable, secure and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses and innovators everywhere.