{"id":241,"date":"2017-05-24T09:18:09","date_gmt":"2017-05-24T09:18:09","guid":{"rendered":"http:\/\/www.speakers.co.uk\/microsites\/dambisa-moyo\/?p=241"},"modified":"2017-05-24T16:19:01","modified_gmt":"2017-05-24T16:19:01","slug":"the-eu-banking-system","status":"publish","type":"post","link":"https:\/\/www.speakers.co.uk\/microsites\/dambisa-moyo\/the-eu-banking-system\/","title":{"rendered":"The EU Banking System"},"content":{"rendered":"<p>Despite representing around 20% of world GDP, the eurozone does not have a top-ten bank or financial services institution in the FT 500 global ranking. The knock-on effects of such a fragmented and vulnerable banking system are apparent in Europe\u2019s relatively poor showing in other sectors, such as technology and energy that are vital for EU members\u2019 economic future.<\/p>\n<p>Restoring stability in Europe\u2019s banking system, by the IMF\u2019s own estimate, will require <em>at least<\/em> one-third of Europe&#8217;s banks to close or merge. For Deutsche Bank, market speculators already seem to be expecting a merger, such as with Commerzbank, another German institution.<\/p>\n<p>A cross-border European bank merger would have several benefits. As with any merger, consolidating weak, underperforming banks would enable them to strengthen their balance sheets and restructure non-performing loans \u2013 <a href=\"https:\/\/www.eba.europa.eu\/-\/eba-provides-updates-on-npls-in-eu-banking-sector\">estimated<\/a> to be worth some \u20ac1 trillion ($1.1 trillion), roughly three times higher than other global jurisdictions \u2013 thereby benefiting the wider economy.<\/p>\n<p>But, if such a merger is to be the first step toward consolidating the European banking sector and strengthening the EU, it should be a <a href=\"https:\/\/www.project-syndicate.org\/commentary\/mergers-europe-banking-system-by-xavier-vives-2016-09\">cross-border affair<\/a>, bringing Deutsche Bank together with a significant French and\/or Italian financial institution. Such an approach could be a game changer in terms of the EU\u2019s political credibility, which is perhaps most crucial to keeping the EU dream alive.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Despite representing around 20% of world GDP, the eurozone does not have a top-ten bank or financial services institution in the FT 500 global ranking. The knock-on effects of such&#8230;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":{"0":"post-241","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-in-her-own-words"},"_links":{"self":[{"href":"https:\/\/www.speakers.co.uk\/microsites\/dambisa-moyo\/wp-json\/wp\/v2\/posts\/241","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.speakers.co.uk\/microsites\/dambisa-moyo\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.speakers.co.uk\/microsites\/dambisa-moyo\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.speakers.co.uk\/microsites\/dambisa-moyo\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.speakers.co.uk\/microsites\/dambisa-moyo\/wp-json\/wp\/v2\/comments?post=241"}],"version-history":[{"count":1,"href":"https:\/\/www.speakers.co.uk\/microsites\/dambisa-moyo\/wp-json\/wp\/v2\/posts\/241\/revisions"}],"predecessor-version":[{"id":242,"href":"https:\/\/www.speakers.co.uk\/microsites\/dambisa-moyo\/wp-json\/wp\/v2\/posts\/241\/revisions\/242"}],"wp:attachment":[{"href":"https:\/\/www.speakers.co.uk\/microsites\/dambisa-moyo\/wp-json\/wp\/v2\/media?parent=241"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.speakers.co.uk\/microsites\/dambisa-moyo\/wp-json\/wp\/v2\/categories?post=241"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.speakers.co.uk\/microsites\/dambisa-moyo\/wp-json\/wp\/v2\/tags?post=241"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}