FRED (Federal Reserve Economic Data) database is a treasure trove for bank geeks.
Bank’s return on assets by nation is one of many statistics that can be visualized with GeoFRED (click
As you scroll through the years, you’ll notice a few patterns.
Return on assets is low in Western and Southern Europe, as well as in Japan.
Banks in the Americas, Africa and Central Europe achieve higher returns.
I’m curious to know what conclusions bank CEOs and regulators draw from these maps.
What are your thoughts?
Where in the world are banks profitable? (FRED blog)
Rethinking bank profitability (FT Alphaville, free but registration needed)
Cross border financial services: Europe’s Cinderella?
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
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
The slides of the presentations are available
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…
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”