Author(s): Rym Ayadi, Emrah Arbak, Willem Pieter De Groen
In: Financial Markets, CEPS Paperbacks
Date: 26 June 2012
Pages: 127

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Amidst talks of establishing an EU-wide banking union, the recent changes in the regulatory framework and the rethinking of the future of European banking structure, the future of EU bank regulation is inextricably linked to banks’ business models. Using a sample of over 70 banks, which overlaps with those subjected to the EBA’s 2011 stress tests, this report emphasizes the key regulatory gaps that emerge from a comprehensive analysis of the soundness and performance of bank business models and provides policy-makers with guidance to reinforce the evolving regulatory framework in European banking.

The study was commissioned by the Greens-European Free Alliance Political Group in the European Parliament and directed by Dr. Rym Ayadi, Senior Research Fellow and Head of the Financial Institutions and Prudential Policy research unit at CEPS. The research team included Emrah Arbak, Researcher and Willem Pieter de Groen, Research Assistant in the same unit at CEPS, with a contribution from David T. Llewellyn of Loughborough University, the Cass Business School in London and the Vienna University of Economics and Business Administration