Arbeitspapier

The relationship between structural and cyclical features of the EU financial sector

In this study, we explore the relationship between certain structural features of the banking sectors in EU Member States and the performance of the respective banking sectors over the financial cycle. Using the financial cycle indicator developed by Stremmel (2015), we estimate the impact of the structural features of the banking sector on the amplitude of the financial cycle. Our results suggest that the concentration of the banking sector, the share of foreign banks, the size and stability of financial institutions, the share of foreign currency loans and financial inter-linkages contribute to the amplitude and hence the variability of financial cycles. This study provides important insights into the appropriate design of various structural and cyclical policy instruments as well.

ISBN
978-92-899-1625-7
Language
Englisch

Bibliographic citation
Series: ECB Working Paper ; No. 1812

Classification
Wirtschaft
Financial Markets and the Macroeconomy
Policy Objectives; Policy Designs and Consistency; Policy Coordination
General Financial Markets: Government Policy and Regulation
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Financial Institutions and Services: Government Policy and Regulation
Subject
banking sector characteristics
financial cycle
financial regulation
financial structure

Event
Geistige Schöpfung
(who)
Stremmel, Hanno
Zsámboki, Balázs
Event
Veröffentlichung
(who)
European Central Bank (ECB)
(where)
Frankfurt a. M.
(when)
2015

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Stremmel, Hanno
  • Zsámboki, Balázs
  • European Central Bank (ECB)

Time of origin

  • 2015

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