Home > banks and banking, business and economics, Europe, International Monetary Fund > Bank Debt in Europe “Are Funding Models Broken”

Bank Debt in Europe “Are Funding Models Broken”

December 26, 2012

Bank Debt in Europe: “Are Funding Models Broken”

Source: International Monetary Fund

The crisis in Europe has underscored the vulnerability of European bank funding models compared to international peers. This paper studies the drivers behind this fragility and examines the future of bank funding, primarily wholesale, in Europe. We argue that cyclical and structural factors have altered the structure, cost, and composition of funding for European banks. The paper discusses the consequences of shifting funding patterns and investor preferences and presents possible policy options and bank actions to enhance European bank funding models’ robustness.

About these ads
Follow

Get every new post delivered to your Inbox.

Join 944 other followers

%d bloggers like this: