Integration of the banking sector in the European Union

Agnieszka Tkaczyszyn

Abstract

The aim of the doctoral thesis “The integration of the banking sector in the European Union” is presenting the integration process of the EU banking sector by researching the degree of integration itself, identifying barriers that prevent the rapid development of this process, and verifying the activities of the institutions involved in the supervision of the functioning of the sector in the international scale. There are four research hypotheses: 1. In the European Union there are significant differences in the degree of integration of the various segments of the banking sector. 2. The existence of institutional barriers unables completion of the integration of the banking sector in the European Union. 3. The financial crisis of 2008-2009 and the debt crisis of the Euro zone, despite the clear negative consequences for the world economy, strengthened the integration of the EU banking sector in the institutional area. 4. The lack of comprehensive supervision at the EU level is a factor that undermines the integration of the European Union banking sector. Verification of these hypotheses has been done by attempting to answer the following questions: 1. How has the integration of the banking sector in the European Union proceeded? 2. Which segments of the banking sector are the most integrated and which the least integrated ones? Which barriers impede the full integration of the EU banking sector? 3. What are the threats related to the integration process of the EU banking sector? 4. Are the financial crisis of 2008-2009 and the debt crisis of the Euro zone affected by the integration process of the EU banking sector? Are there any changes needed in the activities of institutions that oversee the integrated banking sector? Is the new system of banking supervision, that was established in January 2011 on the EU banking sector, able to increase the level of its integration? What is the role of banking union in the integration process of the banking sector? The conclusion of the work presents that the process of integration of the banking sector in the European Union was proceeding in stages. It is based mainly on adaptation of the legal acts, which usually take the form of directives. The main reasons of developing the integration process in the banking sector are the initiatives of the European Commission, taken in the form of white papers. It has to be highlighted that the financial market and the banking sector in the initial stage of European economic unification, were created separately in each of the member states and were based only on national regulations. A significant turn round in the integration process of the European Union banking sector was the adoption of the First Banking Directive in 1977, which opened the way for the internationalization of European banking services. However, Single European Act was essential to accelerate the process of integration of EU financial markets. The Single European Act originated the banking and finance should pave the way for the European economic integration. Crucial moment to accelerate the integration of the banking sector and financial market was creating Economic and Monetary Union in 1999. Very important for the integration of the banking sector were also the financial crisis of 2008-2009 and the debt crisis in the Euro zone, which affected the degree of integration and had enormous influence on the institutional arrangements for the supervision of single market banking. Researching the degree of integration of the EU banking sector led to conclusion, that the integration of banking market proceeds in a separate motion in each of its segments: on the interbank market, the deposit and loan market (retail banking), and within investment banking. In addition, very huge differences are also visible between countries that are members of the Economic and Monetary Union and those that have not implemented the common currency. The most integrated part of the banking sector is the interbank market, and in particular the Euro zone interbank market. On the second spot is located investment banking. The least integrated is the retail banking. The reasons for this result are the obstacles, which hinder the development of the banking market integration. These barriers result from various factors. The biggest obstacle to the development of retail banking integration is mainly consumer attitudes in this market, as well as their low awareness of the benefits of cross-border usage of banking services. The second group of barriers are political and legal nature obstacles. The most significant hindrance to integrate investment banking is heterogeneity of securities market. With the diversity of the securities market are also associated legal barriers arising from the different laws and regulations in the Member States correlated with operations in the securities market. Among the barriers of integration of interbank market, which is the most integrated one, are: fragmentation of settlement infrastructure and the dissimilarity of legal regulations. In addition, a significant barrier of the integration of the banking sector, which is associated with all segments of the banking market, is a lack of appropriate and adapted to the needs of the single banking market, effectively acting supervision. Overcoming this obstacle is a huge challenge to the integration process of the European Union banking sector. It is also associated with the treats of the integration process. The threats include: phenomenon of contagion and the activities of financial conglomerates. These risks were shown by the recent financial crisis and debt crisis of Euro zone. Both the above mentioned crises compelled the EU to act. The activity of European Union has led to the creation of new ideas and solutions for the supervision of financial market in the EU in the form of the European System of Financial Supervision, European Financial Stability Mechanism and the concept of banking union. The both crises have proven that the integration process of the banking sector can not be developed without a well-functioning supervision system. Therefore, the financial crisis of 2008-2009 and debt crisis of Euro zone, despite their clear negative consequences for the world economy, give an impulse to strengthen the integration of the EU banking sector in the institutional sphere.
Diploma typeDoctor of Philosophy
Author Agnieszka Tkaczyszyn
Agnieszka Tkaczyszyn,,
-
Title in EnglishIntegration of the banking sector in the European Union
Languagepl polski
Certifying UnitFaculty of Economic Sciences (ES)
Disciplineekonomia / nauki ekonomiczne(nauki ekonomiczne) / nauki społeczne()
Defense Date11-06-2013
End date27-06-2013
Supervisor Ewa Pancer-Cybulska (ES / DEPaERS)
Ewa Pancer-Cybulska,,
- Department of Economic Policy and European Regional Studies

Internal reviewers Mirosława Klamut (ES / DEPaERS)
Mirosława Klamut,,
- Department of Economic Policy and European Regional Studies
External reviewers Grażyna Wolska
Grażyna Wolska,,
-
Pages277
Keywords in Englishintegration, banking sector, banking supervision, financial crisis
Abstract in EnglishThe aim of the doctoral thesis “The integration of the banking sector in the European Union” is presenting the integration process of the EU banking sector by researching the degree of integration itself, identifying barriers that prevent the rapid development of this process, and verifying the activities of the institutions involved in the supervision of the functioning of the sector in the international scale. There are four research hypotheses: 1. In the European Union there are significant differences in the degree of integration of the various segments of the banking sector. 2. The existence of institutional barriers unables completion of the integration of the banking sector in the European Union. 3. The financial crisis of 2008-2009 and the debt crisis of the Euro zone, despite the clear negative consequences for the world economy, strengthened the integration of the EU banking sector in the institutional area. 4. The lack of comprehensive supervision at the EU level is a factor that undermines the integration of the European Union banking sector. Verification of these hypotheses has been done by attempting to answer the following questions: 1. How has the integration of the banking sector in the European Union proceeded? 2. Which segments of the banking sector are the most integrated and which the least integrated ones? Which barriers impede the full integration of the EU banking sector? 3. What are the threats related to the integration process of the EU banking sector? 4. Are the financial crisis of 2008-2009 and the debt crisis of the Euro zone affected by the integration process of the EU banking sector? Are there any changes needed in the activities of institutions that oversee the integrated banking sector? Is the new system of banking supervision, that was established in January 2011 on the EU banking sector, able to increase the level of its integration? What is the role of banking union in the integration process of the banking sector? The conclusion of the work presents that the process of integration of the banking sector in the European Union was proceeding in stages. It is based mainly on adaptation of the legal acts, which usually take the form of directives. The main reasons of developing the integration process in the banking sector are the initiatives of the European Commission, taken in the form of white papers. It has to be highlighted that the financial market and the banking sector in the initial stage of European economic unification, were created separately in each of the member states and were based only on national regulations. A significant turn round in the integration process of the European Union banking sector was the adoption of the First Banking Directive in 1977, which opened the way for the internationalization of European banking services. However, Single European Act was essential to accelerate the process of integration of EU financial markets. The Single European Act originated the banking and finance should pave the way for the European economic integration. Crucial moment to accelerate the integration of the banking sector and financial market was creating Economic and Monetary Union in 1999. Very important for the integration of the banking sector were also the financial crisis of 2008-2009 and the debt crisis in the Euro zone, which affected the degree of integration and had enormous influence on the institutional arrangements for the supervision of single market banking. Researching the degree of integration of the EU banking sector led to conclusion, that the integration of banking market proceeds in a separate motion in each of its segments: on the interbank market, the deposit and loan market (retail banking), and within investment banking. In addition, very huge differences are also visible between countries that are members of the Economic and Monetary Union and those that have not implemented the common currency. The most integrated part of the banking sector is the interbank market, and in particular the Euro zone interbank market. On the second spot is located investment banking. The least integrated is the retail banking. The reasons for this result are the obstacles, which hinder the development of the banking market integration. These barriers result from various factors. The biggest obstacle to the development of retail banking integration is mainly consumer attitudes in this market, as well as their low awareness of the benefits of cross-border usage of banking services. The second group of barriers are political and legal nature obstacles. The most significant hindrance to integrate investment banking is heterogeneity of securities market. With the diversity of the securities market are also associated legal barriers arising from the different laws and regulations in the Member States correlated with operations in the securities market. Among the barriers of integration of interbank market, which is the most integrated one, are: fragmentation of settlement infrastructure and the dissimilarity of legal regulations. In addition, a significant barrier of the integration of the banking sector, which is associated with all segments of the banking market, is a lack of appropriate and adapted to the needs of the single banking market, effectively acting supervision. Overcoming this obstacle is a huge challenge to the integration process of the European Union banking sector. It is also associated with the treats of the integration process. The threats include: phenomenon of contagion and the activities of financial conglomerates. These risks were shown by the recent financial crisis and debt crisis of Euro zone. Both the above mentioned crises compelled the EU to act. The activity of European Union has led to the creation of new ideas and solutions for the supervision of financial market in the EU in the form of the European System of Financial Supervision, European Financial Stability Mechanism and the concept of banking union. The both crises have proven that the integration process of the banking sector can not be developed without a well-functioning supervision system. Therefore, the financial crisis of 2008-2009 and debt crisis of Euro zone, despite their clear negative consequences for the world economy, give an impulse to strengthen the integration of the EU banking sector in the institutional sphere.
KBN classificationekonomia
Thesis file
Agnieszka Tkaczyszyn - Proces integracji sektora bankowego w Unii Europejskiej.pdf 2,51 MB
Other files
Opis rozprawy doktorskiej.pdf 150,03 KB

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