Shifting geography of the European banking centres as a result of the global economic crisis and its aftermath

Authors: Jirí Blažek*, Charles University, Tereza Hejnová, Charles University
Topics: Economic Geography, Europe
Keywords: financial geography, banking centres, global economic crisis, Europe
Session Type: Paper
Day: 4/5/2019
Start / End Time: 1:10 PM / 2:50 PM
Room: Roosevelt 0, Marriott, Exhibition Level
Presentation File: No File Uploaded

This presentation aims to unravel the impacts of the global economic crisis upon the European banking centres on the basis of the evolution of key economic indicators such as total assets, profitability and the level of risk of their banking sectors over the 2004-2015 period. Counterintuitively, the European banking mega-centres (London, Paris and Frankfurt), despite their vast exposure towards capital markets, displayed a high level of resilience, which contrasts with the evolution of other major West-European centres, which clearly lagged behind the European banking mega-centres. From a macro-regional perspective, banking centres in Western Europe exhibited the first signals of both the crisis and the recovery, which were subsequently diffused across Europe. Thus, in Southern Europe, the crisis hit the banks most severely only in years 2010-2012. Surprisingly, the profitability of low-ranking banking centres in Central and Eastern Europe remained the highest over the whole 2004-2015 period as these banks operate predominately on a regional (national) market. Profound differences in economic performance have been identified also among the smallest European banking centres according to ownership (foreign, local, mixed), macro-region and size of the respective banks.

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