than 56% of bankers surveyed by EY in 2016 agreed that cybersecurity ... Cloud. Cloud computing allows for users to shar
E B ur Fe an op de ki ea ra n g n tio n
BANKING IN EUROPE Facts and Figures on the European banking sector in 2017
SERVING HOUSEHOLDS AND BUSINESSES IN MORE THAN 32 COUNTRIES
Bank financed economy
6,500 BANKS 2.8 MILLION EMPLOYEES
Banks at work 189,000 branches
448,000 ATMs
1-in-100
80%
Bank finance
20%
Market finance
jobs is a banking job
Euro area’s economic recovery continues in 2017 Deposits-per-capita
€43,181
1.7%
Growth
9.5%
Unemployment
1.6%
Inflation
1.4%
Private consumption
Loans-per-capita P Pr a r og tne re ri ss ng
€46,112
FINANCING THE ECONOMY Lending environment is improving 70 60
Large enterprises
50
SMEs
40
OVER 305 MILLION cashless payments per day (in EU)
Easing
Tightening
20 10
2016 Q3
2016 Q1
2015 Q3
2015 Q1
2014 Q3
2014 Q1
2013 Q3
2013 Q1
2012 Q3
2012 Q1
2011 Q3
2010 Q3
2010 Q1
2009 Q3
2009 Q1
0 -10
2008 Q3
card POS payments per day (in EU)
30
2008 Q1
OVER 150 MILLION
2011 Q1
Europe’s banks are global payments leaders:
After years of tightening credit standards in the EU, the lending environment is improving for SMEs and large enterprises. Improved lending conditions, as well as continued EU-wide growth, provide SMEs with a unique opportunity to grow and prosper in the EU. Banks continue to play a crucial role in facilitating this growth.
Integrated Payments
Capital Markets Union
The Single European Payments Area (SEPA) aims to harmonise and integrate payment markets across Europe, with one set of euro payment instruments: credit transfers, direct debits and payment cards, common standards and practices and a harmonised legal basis. SEPA covers more than 520 million people in 34 countries.
Strengthening and diversifying financing for businesses across the EU is the objective of the EU’s Capital Markets Union plan. The banking sector fully embraces CMU as a way for creating a new ecosystem for growth and for unlocking the latent investment potential in financial markets. “Strong and stable banks are a key partner when it comes to getting Capital Markets Union to deliver on its objective of financing growth in Europe” Wim Mijs, Chief Executive Officer of the EBF
A STRONGER BANKING SECTOR Key ratios are improving
51.3%
14.00%
5.00% 4.50%
12.00%
Deposits in EU banks as a share of total banking assets (up from 47.3% in 2007)
4.00%
10.00%
3.5%
3.50% 3.00%
8.00%
2.50%
CET1
6.00%
2.00%
Leverage Ratio
4.00%
1.50%
Sources: EBA and EBF
2.00%
1.00% 0.50%
0.00%
Jan-11
Jan-12
Jan-13
Jan-14
Jan-15
Return on Equity (ROE) of EU banks in 2016
Jan-16
0.00%
Harmonising EU banking rules Single Rulebook While bankers across Europe agree that regulation is the most significant challenge they face they also recognize the benefits of the EU’s Single Rulebook. Initiated in 2009, the Single Rulebook aims for a unified regulatory framework that would complete the single market in financial services.
But, profitability remains challenging 25 20 15
Banking Union
10
RETURN ON EQUITY GAP
5 COE
0
ROE
-5 2000
2002
2004
2006
2008
2010
2012
2014
2016
As part of Banking Union, the national responsibility for banking supervision in Eurozone countries was transferred to the EU level in 2014. Since then, the largest Eurozone banks are supervised directly by the European Central Bank under the Single Supervisory Mechanism. Banking Union also includes the Single Resolution Mechanism.
EMBRACING DIGITAL Banks
Fintech
Cybersecurity The main IT risk for banks in Europe today is the threat of cybercrime. In Q1 2017 alone, more than 500 million attacks were launched from the web, according to Kaspersky Labs. More than 56% of bankers surveyed by EY in 2016 agreed that cybersecurity is a top priority for their organisation, compared to 48% a year earlier.
Investments in Financial Technology Blockchain
92%
Regulatory Technology
62%
Financial Services Software
62%
Data Analytics
39%
Payments & Settlement
31%
Lending
23%
Wealth Management
15%
Personal Finance
15%
Payment Services
Sources: CBInsights
92% of major EU banks are investing in Blockchain/Distributed Ledger Technology
The EU’s second Payment Services Directive, or PSD2, is creating a harmonized framework for innovative and competitive payment services, triggering a revolution in online payments. Banks support an EU payments ecosystem that is secure, reliable and interoperable.
Digital Single Market €415
BILLION
Big Data Large data sets allow for companies to better analyse customers and trends, creating better and more personalised services.
Extra GDP growth
Cloud Cloud computing allows for users to share documents and data over the cloud, facilitating easier global cooperation.
3.8
MILLION
New jobs
Digital Skills Given the rapid pace of digitalisation, obtaining digital skills such as coding is vital to maintaining a competitive edge
Sources: Unless otherwise stated, the data contained in this publication has been compiled from publicly available information released by the European Central Bank, European Commission, Eurostat, the European Banking Authority and members of the EBF.
