Consolidation and the EU banking sector

Abstract

According to Sarch, big banks are currently buying up smaller fintechs as a way of growing their balance sheets rather than thinking about merging with a direct competitor. Concerns about creating mega banks are warranted, but greater regulation placed on them means that the economy is protected to some extent. Since the financial crisis, big banks have generally grown to be bigger than ever before. Completion of the Banking Union was said to be dependent on European bank consolidation, but another concern facing the sector is the high number of non-performing loans (NPLs) that still exist as a legacy of the financial crisis.