The European banking landscape has profoundly changed as a result of the regulatory response to the 2007–8 global financial crisis and ensuing sovereign debt crisis in the Eurozone. Moreover, the extensive changes in the economic and regulatory environment have highlighted a number of unresolved
issues in European banking. This Handbook offers a comprehensive overview of these key issues, taking stock after the recent crises and looking forward. Although the new regulatory architecture is now mostly in place, its successful implementation depends crucially on how the Eurozone deals with the legacy of the financial crises. Even after substantial regulatory reforms, debates on further reforms needed to strengthen the EU regulatory framework to limit future risks arising from the banking system are ongoing. The persistent weakness of some Eurozone banking systems puts the implementation of the newly agreed rules to a test. It is against this background that this Handbook aims to provide an understanding of the key issues facing European banks. The Handbook is composed of five main parts. Part 1, European Banking: Through the Crisis and Beyond, offers an overview of the European banking sector in terms of financial structure, ownership and business models and corporate governance, as well as the payment system. Part 2, Performance and Innovation in European Banking, discusses the key themes of bank competition, efficiency and performance. In addition, it looks at the impact of technological development on the banking sectors and how banks are embracing the opportunities it offers. Finally, it explores the issues of bank diversification and the relevance of small business lending. Part 3, Financial Stability and Regulation, addresses the key issues of financial reforms and the increasing complexity of financial regulation. It also looks v
at the impact of state aid and the impact of monetary policy. Finally, it considers the increasing interactions between banks and markets. Part 4, Cross- border Banking, looks at recent trends in cross-border banking in Europe and evaluates the establishment of the Banking Union. Finally, Part 5, European Banking Systems, offers a detailed analysis of the main issues facing national banking system in key European banking markets. The chapters of this Handbook document major trends across European banking systems and the implications of a changed regulatory and monetary environment. Building upon a close interaction between researchers, practitioners and policy makers, this Handbook aims to provide the necessary tools to understand the current practical and policy challenges. London, July 2016
Thorsten Beck Barbara Casu
This text could have never been completed without the help and support of a number of individuals. First and foremost, we wish to thank the contributors to this Handbook. We are delighted to have brought together an outstanding group of experts, ranging from senior policy makers to academics, each with a wealth of expertise in their field. Their expert contributions, together with their commitment to the project, have helped us deliver a text that offers an in-depth analysis of the key issues facing European banking. We are indebted to Aimee Dibbens, Senior Commissioning Editor Economics & Finance, whose enthusiasm was crucial in convincing us to undertake the project. We also wish to thank the editorial team at Palgrave Macmillan, in particular Alexandra Morton, Editorial Assistant Finance, who has worked closely with us during the entire project ensuring a timely delivery and high-quality content. We would like to acknowledge the support of our home institution, Cass Business School, City, University of London. Finally, we wish to thank our families and friends for encouragement and support. Thorsten Beck thanks his wife and sons for their patience with his skewed work–life balance. Barbara Casu thanks her husband and her children for their enthusiasm, their patience and support.
Part I European Banking: Through the Crisis and Beyond
1 European Banking: An Overview3 T. Beck, B. Casu 2 Financial Structure25 Sam Langfield, Marco Pagano 3 Bank Diversification and Financial Conglomerates in Europe49 Panagiotis Dontis-Charitos, Sotiris Staikouras, Jonathan Williams 4 Banks’ Business Models in Europe81 Rym Ayadi, Willem Pieter de Groen 5 Ownership in European Banking103 John Goddard, Donal G. McKillop, John O.S. Wilson 6 Pay Structures in European Banks135 Jens Hagendorff, Abhishek Srivastav
Part II Performance and Innovation in European Banking
7 European Retail Payments Systems: Cost, Pricing, Innovation and Regulation159 Wilko Bolt, Nicole Jonker, Mirjam Plooij 8 Competition in EU Banking187 Olivier De Jonghe, Maaike Diepstraten, Glenn Schepens 9 The Internet, Crowdfunding and the Banking Industry213 Armin Schwienbacher 10 Small Business Lending231 Santiago Carbo-Valverde, Francisco Rodríguez-Fernández 11 European Bank Efficiency and Performance: The Effects of Supranational Versus National Bank Supervision257 Rients Galema, Michael Koetter
Part III Financial Stability and Regulation
12 Regulatory Reforms in the European Banking Sector295 Elena Carletti, Agnese Leonello 13 Complexity in Regulation323 Andrew Haldane, Tobias Neumann 14 State Aid and Guarantees in Europe349 Reint Gropp, Lena Tonzer 15 The Bank Lending Channel of Monetary Policy: A Review of the Literature and an Agenda for Future Research383 Mintra Dwarkasing, Narly Dwarkasing, Steven Ongena
16 The Interplay Between Banks and Markets: Supervisory Stress Test Results and Investor Reactions409 Giovanni Petrella, Andrea Resti
Part IV Cross-Border Banking
17 The Banking Union: An Overview and Open Issues451 Dirk Schoenmaker 18 Recent Trends in Cross-Border Banking475 Ralph De Haas, Neeltje van Horen
Part V European Banking Systems
19 Banking in the UK501 Philip Molyneux 20 Banking in Italy521 Elena Beccalli, Claudia Girardone 21 The German Banking System541 Patrick Behr, Reinhard H. Schmidt 22 Banking in Spain567 Joaquin Maudos, Xavier Vives 23 Banking in France603 Laetitia Lepetit, Céline Meslier, Amine Tarazi 24 Credit Institutions, Ownership and Bank Lending in Transition Economies623 Rainer Haselmann, Paul Wachtel, Jonas Sobott Index645
List of Abbreviations
ACHs ACM ACPR AE AFECE
Automated Clearing Houses Authority Consumer and Market (The Netherlands) Autorité de contrôle prudentiel et de résolution Allocative Efficiency Association Française des Etablissements de Crédit et des Entreprises d'investissement AGP Asset Guarantee Program AISPs Account Information Service Providers AMA Advanced Measurement Approach AMAFI Association Française des marchés financiers AMEX American Stock Exchange AMF Autorité des marché financiers ASF Association Française des Sociétés Financières AT1 Additional Tier 1 ATM Automated Teller Machine ATMs Automated Teller Machines B2BBusiness-to-Business BBAs Basic Bank Accounts BCBS Basel Committee on Banking Supervision BEEPS Business Environment and Enterprise Performance Survey BHCs Bank Holding Companies BIC Business Identifier Code BIS Bank for International Settlements BLS Bank Lending Survey BRRD Bank Recovery and Resolution Directive BTS Binding Technical Standards xiii
List of Abbreviations
BU BUA CAP CAR CASS CCAR CDCI CDS CE CEBS CEEC CEO CET CFO CGGs CMA CMU COREP CPMI CPP CR CRD D-SIIs DFAST DSGE DTAs EACB EAPB EBA EBRD EC ECB ECOFIN ECSC EDIS EEA EEC EESA EIOPA EMIs
Banking Union Banking Union Area Capital Assistance Program Cumulative Abnormal Returns Current Account Switch Service Comprehensive Capital Analysis and Review Community Development Capital Initiative Credit Default Swaps Cost Efficiency Committee of European Banking Supervisors Central and Eastern European Countries Chief Executive Officer 1 Common Equity Tier 1 Chief Financial Officer Codes of Good Governance Competition and Markets Authority (UK) Capital Markets Union Common Supervisory Reporting Framework Committee on Payment and Market Infrastructures Capital Purchase Program Concentration Ratio Capital Requirements Directive Domestic Systemically Important Institutions Dodd-Frank Act Stress Test Dynamic Stochastic General Equilibrium Model Deferred Tax Assets European Association of Cooperative Banks European Association of Public Banks European Banking Authority European Bank for Reconstruction and Development European Commission European Central Bank EU Council of Finance European Coal and Steel Community European Deposit Insurance Scheme European Economic Area European Economic Community Economy Emergency Stabilization Act European Insurance and Occupational Pensions Authority Electronic Money Institutions
List of Abbreviations
EMU EPC ESFS ESM ESMA ESRB EU FAAF FBF FCA FDI FDIC FGDR FI FPC FROB FSA FSAP FSB FSF FSMA FX G-SIBs G-SIIs GAAP GDP GIIPS GMM GVA HHI IAS IBAN IFR IFRS IGA IICADD IMF IPOs
Economic and Monetary Union European Payment Council European System of Financial Supervisors European Stability Mechanism European Securities and Markets Authority European Systemic Risk Board European Union Financial Assets Acquisition Fund (Spain) Fédération Bancaire Française Financial Conduct Authority Foreign Direct Investment Federal Deposit Insurance Corporation Fonds de Garantie des Dépôts et de Résolution Financial Institutions Financial Policy Committee Fund for Orderly Restructuring of the Banking Sector (Spain) Financial Services Authority (UK) Financial Services Action Plan Financial Stability Board Financial Stability Forum Financial Services Modernization Act Foreign Exchange Global Systemically Important Banks Global Systemically Important Institutions Generally Accepted Accounting Principles Gross Domestic Product Greece, Ireland, Italy, Portugal and Spain Generalised Method of Moments Gross Value Added Herfindahl–Hirschman Index International Accounting Standards International Bank Account Number Regulation on Interchange Fees (for Card-Based Payment Transactions) International Financial Reporting Standards Intergovernmental Agreement International Institute of Cooperatives Alphonse and Dorimène-Desjardins International Monetary Fund Initial Public Offerings
List of Abbreviations
ISFS International Initiative for Sustainable Financial Systems JSTs Joint Supervisory Teams LCFIs Large Complex Financial Institutions LCR Liquidity Coverage Ratio LIBOR London Interbank Offered Rate LTILoan-to-Income LTVLoan-to-Value M&As Merger and Acquisitions MaRS Macroprudential research network MES Marginal Expected Shortfall MFIs Monetary Financial Institutions MIFs Multilateral Interchange Fees MLE Maximum Likelihood Estimation NASDAQ National Association of Securities Dealers Automated Quotations NCA National Competent Authorities NCBs National Central Banks NEIO New Empirical Industrial Organization NPLs Non-Performing Loans NSFR Net Stable Funding Ratio NYSE New York Stock Exchange OECD Organisation for Economic Co-operation and Development OLS Ordinary Least Squares OTC Over the Counter P&L Profit and Loss P2PPeer-to-Peer PBT Profits Before Tax PE Profit Efficiency PIIGS Portugal, Ireland, Italy Greece and Spain PISPs Payment Initiation Service Providers PPI Payment Protection Insurance PRA Prudential Regulatory Authority PSD Directive on Payment Services QFIs Qualifying Financial Institutions R&D Research and Development ROA Return on Assets ROE Return on Equity RWA Risk-Weighted Assets SAFE Survey of Access to Finance of Enterprises
List of Abbreviations
Company for the Management of Assets proceeding from the Restructuring of the Banking System (Spain) SBA Small Business Act (European Commission) SCAP Supervisory Capital Assessment Program SCM Synthetic Counterfactuals Method SCPStructure-Conduct-Performance SDIRB Single Deposit Insurance and Resolution Board SDM Single Deposit Guarantee Mechanism SEPA Single Euro Payments Area SFA Stochastic Frontier Analysis SHVShareholder-value SIFI Systemically Important Financial Institutions SMEs Small and Medium Enterprises SMR Senior Managers Regime (UK) SRB Single Resolution Board SREP Supervisory Review and Evaluation Process SRF Single Resolution Fund SRM Single Resolution Mechanism SSEs Significant Supervised Entities SSM Single Supervisory Mechanism STVStakeholder-value TARP Troubled Asset Relief Program TBTF Too Big To Fail TE Technical Efficiency TFEU Treaty on the Functioning of the EU TFP Total Factor Productivity TIP Targeted Investment Program TLAC Total Loss-Absorption Capacity TOC Total Operating Costs VaRValue-at-Risk VLTROs Very Long Term Refinancing Operations
Notes on contributors
Rym Ayadi is Professor of International Finance and International Business at HEC Montreal International Business School in, Montreal, Canada. She is Director of the Alphonse and Dorimène Desjardins International Institute for Cooperatives and Founding Director of the International Research Centre on Cooperative Finance (IRCCF) at HEC Montreal. She is also Associate Senior Fellow at the Euro- Mediterranean University of Slovenia, Founding President of the Euro-Mediterranean Economists Association in Barcelona and Scientific Director of the Euro- Mediterranean Network for Economic Studies. She has published widely on banking and finance, financial regulation, financial development. She is senior member of several high-level groups and scientific committees. Elena Beccalli is full Professor of Banking at the Faculty of Banking, Finance and Insurance (Università Cattolica del Sacro Cuore), where she is the Dean of the Faculty. She is Visiting Professor at the Department of Accounting and research associate at the Centre for Analysis of Risk and Regulation (both London School of Economics), and academic fellow at the Centre for Responsible Banking and Finance (University of St Andrews). She is department editor (financial institutions) of the Journal of Financial Management, Markets and Institutions. She is the author of numerous academic articles and books in the field of banking. Patrick Behr is Associate Professor of Finance at the Brazilian School of Public and Business Administration at the Getulio Vargas Foundation, Rio de Janeiro, Brazil. His areas of research are banking, corporate finance and microfinance. He has published two books and several articles in journals such as the Review of Finance and Management Science. He has done referee work for American Economic Review, Review of Finance, Review of Financial Studies, and World Development. He is currently a director of the Brazilian Finance Association and co-founder and co-director of the Center for Banking and Finance Research in Rio.
Notes on contributors
Wilko Bolt is a Senior Economist in the Economics and Research department at De Nederlandsche Bank in Amsterdam. His current research focuses on the economics of payments, the theory of two-sided markets and antitrust implications. He has published in journals such as American Economic Review, European Economic Review, Economic Theory, International Journal of Industrial Organization, and International Journal of Central Banking. His book Credible Threats in Negotiations: A Game- theoretic Approach, written jointly with Harold Houba, was published in 2002. Bolt was awarded the Hennipman Prize by the Dutch Royal Economic Association in 2007 for his research. Santiago Carbo-Valverde is Professor of Economics and Finance at the Bangor Business School, UK. Head of Financial Studies of Funcas Foundation, he is a member of the Group of Economic Advisers (GEA) of ESMA. He has been consultant, among others, for the European Central Bank, the European Commission, and the Federal Reserve Bank of Chicago. He has published articles in peer-reviewed journals such as Review of Economics and Statistics, European Economic Review, Review of Finance, Journal of Money, Credit and Banking, Journal of Financial Stability, and Journal of Banking and Finance. Elena Carletti is Professor of Finance at Bocconi University, Milan, Italy. She is also the Scientific Director of the Florence School of Banking and Finance at the European University Institute, a member of the Advisory Scientific Committee of the European Systemic Risk Board and of the Bank of Italy Scientific Committee for the Paolo Baffi Lectures. She is Research Fellow at Centre for Economic Policy Research (CEPR), Fellow of the Finance Theory Group, Extramural fellow at TILEC, Fellow at the Center for Financial Studies, at CESifo, at IGIER and at the Wharton Financial Institutions Center. Her main research areas are financial intermediation, financial crises and regulation, competition policy and sovereign debt. Olivier De Jonghe is an associate professor at the Finance department of Tilburg University (the Netherlands). He is also affiliated to the European Banking Center. Olivier is also a (long-term) visiting researcher at the National Bank of Belgium. Prior to joining Tilburg University, he was a postdoctoral researcher at Ghent University (Belgium). His research focuses on various topics in financial intermediation, regulation and stability. Olivier publishes regularly in academic journals in the field of financial intermediation. Maaike Diepstraten is a PhD candidate at Tilburg University (the Netherlands) and a visiting researcher at the Dutch Central Bank. Prior to joining the PhD programme, she worked as a research assistant for the European Banking Center. Maaike’s research interests include empirical banking and household finance. Panagiotis Dontis-Charitos is Assistant Professor of Finance at ESCP Europe Business School. His main research interests are in the areas of bank diversification and regulation, and financial markets and institutions. His research has been
Notes on contributors
ublished in US and European peer-reviewed journals, and has been presented at p various international conferences. Panagiotis is a member of the advisory board of the BAFA Financial Markets and Institutions Special Interest Group. In the past, he has worked as a stock analyst and sales analyst in the financial services sector. Mintra Dwarkasing is an Assistant Professor of Finance at Erasmus University, the Netherlands. She pursued her PhD studies in finance at Tilburg University, the Netherlands. Her research focuses on corporate finance, financial intermediaries, inequality and social capital. Narly Dwarkasing is an Assistant Professor of Finance at the University of Bonn, Germany. She holds a PhD in finance from Tilburg University, the Netherlands. Her research focuses on corporate finance, financial history, and financial intermediaries. Rients Galema is an Assistant Professor of Finance and Financial Markets at Utrecht University School of Economics. He has worked in a postdoctoral capacity on the project “Markups and trade in international financial services”, for which he spent half a year at the Deutsche Bundesbank to do research in international banking. His research interests are empirical banking, socially responsible investment and microfinance. Claudia Girardone is Professor of Banking and Finance and Director of the Essex Finance Centre at the University of Essex, UK. Her current research focus is on banking sector performance and efficiency, the industrial structure of banking, SME finance and integration in banking and financial markets. She has published widely in the banking area and has recently co-authored the 2nd edition of the textbook Introduction to Banking (2015). She is currently on the editorial board of several journals including the Journal of Banking and Finance and the European Journal of Finance. John Goddard is Professor of Financial Economics at Bangor Business School, Bangor University, Wales, UK. Before joining Bangor University in 2005, he was Professor of Economics at Swansea University. His research interests are in industrial organization, the economics of financial markets and financial institutions, and the economics of professional sports. Willem Pieter de Groen is a Research Fellow at the Financial Institutions and Prudential Policy Unit at the Centre for European Policy Studies (CEPS) in Brussels (Belgium) and an associate researcher at the International Research Centre on Cooperative Finance (IRCCF) of HEC Montréal, Canada. He has (co)-authored many studies on EU and Near East banking regulation, as well as diversity in bank ownership and business models, small and medium-sized enterprises, obstacles to growth and access to finance. Reint E. Gropp is the President of the Institute for Economic Research Halle (IWH) and Professor of Economics at the Otto von Guericke University Magdeburg, Germany. Prior to his appointment at the IWH, he was a Professor of Sustainable Banking and Finance at the Goethe-University Frankfurt am Main and worked for
Notes on contributors
the International Monetary Fund (IMF) as well as the European Central Bank (ECB), where he was Deputy Head of the Financial Research Division. He is Fellow of the Center for Financial Studies, Frankfurt, and Associate Editor of the Review of Finance. And has published widely in the areas of financial economics, banking and corporate finance, including in the Quarterly Journal of Economics, the Review of Financial Studies and the Review of Finance. Ralph De Haas is the Director of Research at the European Bank for Reconstruction and Development. He is also a part-time Associate Professor of Finance at Tilburg University and a Fellow at the European Banking Center. Ralph is the recipient of the 2014 Willem F. Duisenberg Fellowship Prize. He has published work in the Review of Financial Studies; American Economic Journal: Applied Economics; American Economic Review Papers and Proceedings; Journal of Money, Credit, and Banking; and the Journal of Financial Intermediation, among others. Ralph’s research interests include global banking, development economics and small-business finance. Jens Hagendorff is Professor of Finance at Cardiff University, UK. His research focuses on the drivers behind bank risk-taking and systemic risk as well as the corporate governance and risk-return profile of banks. He was recently a visiting fellow at the Federal Reserve Bank of Atlanta and the Bank of Spain in Madrid. Jens’ work has been published in leading international journals such as Review of Finance, Journal of Corporate Finance and Journal of Banking & Finance. Andrew G. Haldane is the Chief Economist at the Bank of England. He is also Executive Director, Monetary Analysis, Research and Statistics. He is a member of the Bank’s Monetary Policy Committee. He also has responsibility for research and statistics across the Bank. Andrew has an Honorary Doctorate from the Open University, is Honorary Professor at University of Nottingham, a Visiting Fellow at Nuffield College, Oxford, a member of Economic Council of Royal Economic Society, a Fellow of the Academy of Social Sciences, Trustee of National Numeracy and Member of Research and Policy Committee at NESTA. Andrew is Chairman and co-founder of ‘Pro Bono Economics’, a charity which brokers economists into charitable projects. Andrew has written extensively on domestic and international monetary and financial policy issues and has published over 150 articles and four books. In 2014, TIME magazine named him one of the 100 most influential people in the world. Reinhard Harry Schmidt is Professor Emeritus of International Banking and Finance at Goethe-University in Frankfurt, Germany, where he has worked since 1991. He has authored, co-authored and edited 25 scholarly books, some 150 academic articles in journals and books. The focus of his research in recent years has been on comparative banking and finance in industrial or advanced countries and finance in developing countries, especially microfinance. Schmidt has been actively involved in development finance as a consultant and researcher for numerous international organizations and as the chairman of the supervisory board of a large development finance institution; his most recent book in this area, From Microfinance to Inclusive Finance (with H.D. Seibel and P. Thomes; 2016). Moreover, he is a frequent commentator on current financial topics in German and international media.
Notes on contributors
Rainer Haselmann is Professor of Finance, Accounting and Taxation at Goethe University and Director of the research area “Financial Institutions” at Sustainable Architecture for Finance in Europe (SAFE). Previously, he was Professor of Finance at Bonn University, where he started as an Assistant Professor of Corporate Finance in 2011. Since 2015 he has also been a Research Professor at the Deutsche Bundesbank. His areas of research interests include the real effects of financial frictions, financial sector regulation as well as law and finance. Neeltje van Horen is a Research Advisor at the Bank of England and a Research Fellow of the CEPR. Prior to joining the Bank of England she worked as a Senior Economist at De Nederlandsche Bank and as a Financial Economist at the World Bank. She has visited and worked at the International Monetary Fund, the Federal Reserve Bank of Chicago and the European Bank for Reconstruction and Development. Her research focuses on macro-financial linkages, international finance and global banking. She has published articles on foreign banks, financial crises, international shock transmission, small business lending, sovereign debt and trade. Nicole Jonker started working in the Research Department of the Netherlands’ Bank in 2001. In 2004 she joined the Cash and Payment Systems division. Nicole has been involved in various studies, including the impact of survey design on measuring cash usage, the impact of budget control on consumers’ choice for cash or cards and the pricing of card payments. She has also been involved in policy work related to the payment cards market and SEPA. Nicole graduated with honours in Econometrics at the University of Amsterdam in 1996, and she obtained a PhD in Economics in 2001. Michael Koetter is Professor of Financial Economics at Otto von Guericke University in Magdeburg and head of the Financial Markets Group at the Leibniz Institute for Economic Research in Halle (IWH). His current research interests concern the consequences of unorthodox monetary policy, (inter)national policy transmission, and crowdfunding. Michael’s research received funding from the Netherlands Organization of Scientific Research (NWO), the Leibniz Association, and others. His work appeared in general interest and field journals, such as the Review of Economics and Statistics, the Review of Financial Studies, and others. Sam Langfield is Principal Economist at the European Systemic Risk Board, based in the European Central Bank, where he has worked since 2011. He was a visiting researcher at Princeton University’s Economics Department and Bendheim Center for Finance, 2015–16. Previously, he was an economist at the Bank of England and the UK Financial Services Authority. He holds an MA degree in Philosophy, Politics and Economics from Oxford University. Agnese Leonello is an economist in the Financial Research Division at the European Central Bank. She holds a PhD in Economics from the European University Institute. Prior to joining the ECB, she was a postdoctoral research fellow at the Wharton Financial Institutions Centre. She conducts her research in the areas of financial intermediation, financial crises, financial regulation and competition policy.
Notes on contributors
Laetitia Lepetit is Professor of Economics at the University of Limoges, France, and has authored/co-authored numerous academic articles on financial institutions, bank risk and prudential regulation. She contributed to several European Commission funded research projects, is Associate Editor of the Journal of International Financial Markets, Institutions & Money, and has held recurrent visiting positions at the University of Birmingham since 2002. She is also currently the Director of Doctoral Studies at the University of Limoges, and has previously served as its Vice-President in charge of Human Resources. Joaquin Maudos is Professor of Economic Analysis at the University of Valencia, Spain, Research Deputy Director at the Ivie and collaborator with Colegio Universitario de Estudios Financieros (CUNEF). He was been visiting researcher at the Florida State University, at the College of Business of the Bangor University and at the School of Business of the University of Glasgow. He has worked as a consultant for the European Commission, the European Investment Bank and the United Nations. He has jointly published 13 books and nearly 90 articles in specialized journals. Donal McKillop is Professor of Financial Services at Queen’s University Belfast, UK. His subject specialisms are financial theory, financial regulation and risk management. He is Head of the Finance and Actuarial Group at Queen’s. Currently he is working on two major funded projects: the integration of residential property and private pensions in the EU and the development of web-based tools to enhance the financial capability of those in debt. Outside his academic position at Queen’s Donal has recently been appointed by the Minister of Finance (Ireland) to advise the Minister and the Central Bank on matters relating to credit unions. He has also advised the Office of the First Minister and Deputy First Minister (Northern Ireland) on intervention measures to help mitigate financial hardship due to the introduction of welfare reform. Céline Meslier is Associate Professor at the University of Limoges, France. Her research interests are in the areas of financial institutions, bank risk and the link between financial development and economic development. She serves as a Vice- Dean for International Relations of the Faculty of Law and Economics and is currently in charge of the promotion of international Master’s degree programme at the University of Limoges. Philip Molyneux is the Dean of the College of Business, Law, Education and Social Sciences and Professor of Banking and Finance at Bangor University, UK. His main areas of research are on empirical banking issues and he has published widely in this area including recent publications in the Journal of Money, Credit Banking, Review of Finance and Journal of Banking and Finance. He has co-authored various texts including: Introduction to Banking (2015, Pearson), Introduction to Global Financial Markets (2015, Palgrave Macmillan) and the Oxford Handbook of Banking (2014, Oxford University Press).
Notes on contributors
Tobias Neumann is a Senior Economist at the Bank of England, working in its Prudential Policy Directorate. Tobias has represented the Bank of England at the Basel Committee’s Trading Book Group working on the Fundamental Review of the Trading Book. His research interests include banking regulation, in particular how regulations should be designed in the context of complexity, and how prudential regulation interacts with monetary policy. Steven Ongena is Professor in Banking at the University of Zurich and the Swiss Finance Institute in Switzerland. He is also a research fellow of CEPR and a research professor at KU Leuven. He has published more than 55 papers in refereed academic journals, including in the American Economic Review, Econometrica, Journal of Finance, Journal of Financial Economics, Journal of International Economics, Journal of Political Economy, Management Science and Review of Finance, among other journals, and he has published more than 50 papers in books and other collections. In 2012 he received a NYU-Fordham-RPI Rising Star in Finance Award. Marco Pagano is Professor of Finance at University of Naples Federico II, Italy, where he also directs the Centre for Studies in Economics and Finance (CSEF). He is also president of the Einaudi Institute for Economics and Finance, Rome. From 2004 to 2011 he was managing editor of the Review of Finance. Currently he chairs the Advisory Scientific Committee of the European Systemic Risk Board. His research focuses on banking, corporate finance and market microstructure, and in 2011 he received an ERC Advanced Grant. Giovanni Petrella is Professor of Banking at Università Cattolica in Milan, Italy, where he teaches derivatives and market microstructure, and serves as academic coordinator for the graduate programme in banking and finance. He is currently a member of the Banking Stakeholder Group at the European Banking Authority in London and the Securities and Markets Stakeholder Group at the European Securities and Markets Authority in Paris. Mirjam Plooij started working as a policy advisor at De Nederlandsche Bank in 2011, after completing master’s degrees in sociology at Utrecht University and Euroculture (European studies) at the universities of Göttingen and Uppsala. From 2011 until early 2014 she was a member of the SEPA Programme Agency of the Dutch National Forum on SEPA Migration. After that, her focus areas shifted to innovation in retail payments and European regulatory developments related to payment services. She has also been involved in research on topics such as payment behaviour by consumers and interchange fees for card payments. Andrea Resti is Professor of Banking and Finance at Bocconi University, Milan, Italy, and the author of numerous books and academic articles on financial risk management and regulation. Andrea has served as the vice-chairman of the Banking Stakeholder Group at EBA, and currently advises the European Parliament on banking supervision matters. Formerly he was the managing director of CAREFIN,
Notes on contributors
Bocconi’s Centre for Applied Research in Finance, and acted as a consultant for the European Investment Bank, the Bank of Italy and other large financial institutions, as well as for the Italian magistrates investigating financial scandals. Francisco Rodriguez-Fernandez is Professor of Economics at the University of Granada, Spain. A senior economist at Funcas, he has been visiting researcher at the Universities of Modena and Bologna, the ECB, and the Federal Reserve Bank of Chicago. He has been a member in several national and international research projects. He has published articles in peer-reviewed journals such as Review of Economics and Statistics, Journal of Money, Credit and Banking, European Economic Review, Review of Finance, and Journal of Financial Stability. Glenn Schepens is an economist at the Financial Research Division (DG Research) of the ECB. His primary research interests include Financial Intermediation, Empirical Banking and Financial Regulation and Supervision. Before joining the European Central Bank, he worked as an economist at the National Bank of Belgium (2013–15). He obtained his PhD in 2013 from Ghent University. His contributions to this Handbook are his personal views and do not necessarily reflect the views of the European Central Bank or the Eurosystem. Dirk Schoenmaker is Professor of Banking and Finance at the Rotterdam School of Management, Erasmus University, and a Senior Fellow at the Brussels-based think- tank Bruegel. He is also a Research Fellow at the CEPR and a member of the Advisory Scientific Committee of the European Systemic Risk Board at the ECB. Dirk is author of Governance of International Banking: The Financial Trilemma (2013, Oxford University Press) and co-author of the textbook Financial Markets and Institutions: A European Perspective (2015, Cambridge University Press). Armin Schwienbacher is a professor of finance at SKEMA Business School (France). He previously worked at the Lille 2 University (France), Louvain School of Management (Belgium), Universiteit van Amsterdam (the Netherlands) and Duisenberg School of Finance (the Netherlands). He has presented his research on crowdfunding (including regulation of equity crowdfunding), venture capital, and various other topics in corporate finance at many universities, financial institutions and international conferences, including the European Commission, the European Central Bank and the OECD, and his work has been published in several international academic journals. Jonas Sobott is a PhD student at the Bonn Graduate School of Economics and the Max Planck Institute for Research on Collective Goods. Abhishek Srivastav is a Lecturer in Banking and Finance at the University of Leeds, UK. His research focuses on bank governance and risk-taking. Abhishek has a track record of publishing at leading finance journals, including Journal of Corporate Finance, Journal of Banking & Finance, and Corporate Governance: An International Review.
Notes on contributors
Sotiris K. Staikouras is Associate Professor of Banking & Finance at Cass Business School, City University, London. His research interests are risk analysis and management of financial institutions, asset pricing and financial modelling. He has worked as a research advisor at London Clearing House and has delivered training courses for other institutions. He is the Director of the Undergraduate programmes, and he also served as Director of various Masters’ programmes. He has published widely in peer reviewed academic journals and his research has been covered by the media. Amine Tarazi is a Professor of Economics and Director of LAPE research centre at the University of Limoges, France. He served as a research consultant for ACPR (French Prudential Supervisory Authority) and is currently a member of its Scientific Committee. He is associate editor of the Journal of Banking and Finance and the European Journal of Finance, among other journals. He has coordinated European Commission projects and visited universities in many countries. His work on bank risk and prudential regulation has appeared in the Journal of Financial Economics, Review of Finance, Journal of Banking and Finance, Journal of Comparative Economics and others. Lena Tonzer has been a postdoctoral researcher in the financial markets department of the Halle Institute for Economic Research (IWH), Germany, since May 2014. She coordinates the research group “Regulation of International Financial Markets and International Banking”. She studied International Economics at the University of Tübingen before joining the doctoral programme in Economics at the European University Institute (EUI) in Florence in 2010. Her research focuses on banking and sovereign debt crises, integration of financial markets, and banking regulation. Xavier Vives is Professor of Economics and Finance at IESE Business School, Spain. He has been a Fellow of the Econometric Society since 1992, of the European Economic Association since 2004, and member of the Academia Europaea since 2012. He has taught at INSEAD, Harvard, UAB, UPF, UC Berkeley, Pennsylvania, and New York University. He is editor of the Journal of Economic Theory and President- elect of EARIE. He has published in the main international journals and is the author of Competition and Stability in Banking (2016). Paul Wachtel is a Professor of Economics at New York University Stern School of Business and the academic director for the BS in Business and Political Economy. He is the co-editor of Comparative Economic Studies and chair of the International Faculty Committee of the International School for Economics in Tbilisi. His areas of research include the finance growth nexus, central banking in the post-crisis world, and financial sector reform in economies in transition. Jonathan Williams is Professor of Banking and Finance at Bangor Business School and Joint Director of the Institute of European Finance. He holds an Honorary Fellowship for Teaching from Bangor University. Jonathan’s current research interests focus on executive compensation in banking and the economic performance and
Notes on contributors
development of national banking sectors. His earlier research focused on European savings banks with published works on management behaviour; bank efficiency; regional banking; technical change and productivity; and economies of scale. His more recent work centres on financial liberalization in banking sectors in the emerging markets, and includes studies of bank restructuring; market power and competition; bank privatization; foreign bank entry; governance; and mergers and acquisitions. His most recent works cover education and bank performance, performance and risk at family firms, and the risk effects of diversification. John Wilson is Professor of Banking & Finance and Director for the Centre for Responsible Banking & Finance at the University of St Andrews, Scotland. He has published over 50 refereed journal articles and authored numerous books, including: European Banking: Efficiency, Technology and Growth; and Banking: A Very Short Introduction (2016). John edited a five-volume Routledge Major Works in Banking, and co-edited the first and second editions of the Oxford Handbook of Banking. In the period June 2011 to April 2012, John served as a full member of a Commission on Credit Unions established by the Irish Government.