Cross border financial services: Europe’s Cinderella?

The Belgian Financial Forum and SUERF held a colloqium about cross border financial services in Europe.

An impressive line-up of speakers from the public and private sector discussed why European banks don’t sell more services outside their home countries.

Some pointed out that regulation is still fragmented along national borders – despite the banking union.

But the recurring theme of the day was the lack of profitability. There is no business case for mergers and acquisitions. Countries like Germany and Italy have way too many banks.

Chart by Morgan Stanley, via Johannes Borgen

The industry would be better off with fewer players, but nobody wants to take over small banks with wafer-thin margins.

You can read my Twitter thread about the event here.

I’ll add a link to the slides when they are posted.

Why KBC Group has a larger market cap than Deutsche Bank

See my tweets from a couple of weeks ago. I’ll have more to say on the blog (including the potential merger/acquisition of Commerzbank) if I find the time…

Foreign owned banks in Europe

How international is the European banking landscape?

Jamie Dimon, CEO of American bank JPMorgan Chase, says that European banks need mergers across borders in order to become more competitive. I created the map below to illustrate that Dimon has a point (that’s why he’s richer than you).

Flags show the nationality of the owner of the largest foreign owned bank. Subsidiaries and their parents are listed in the text.

Some remarks and observations: Continue reading “Foreign owned banks in Europe”