EBF High-Level Public Dialogue: EUROPEAN BANKING BEYOND THE PANDEMIC

As the pandemic hit the economy, businesses and households across the EU benefited from a resilient European banking ecosystem. A ‘new normal’ in European banking is taking shape, this time with banks as part of the solution. Yet, the industry is encumbered with many of the pre-existing challenges: low returns, high cost of capital, negative interest rates, the prospect of even tighter capital requirements and a fragmented EU financial services market keep Europe’s banking sector from being an attractive place for global investors and from competing globally with big-tech challengers. How does the ‘new normal’ differ from the ‘old normal’?