Preliminary communication
https://doi.org/10.31784/zvr.10.1.10
CONVERGENCE OF EU BANKING SYSTEMS: THE POSITION OF EURO AND NON-EURO AREA COUNTRIES WITH REFERENCE TO CROATIA
Anita Peša
orcid.org/0000-0003-3767-0676
; University of Zadar, Department of Economics, Zadar, Hrvatska
Martina Maté
orcid.org/0000-0002-1290-9209
; University of Zadar, Department of Economics, Zadar, Hrvatska
Dijana Čičin-Šain
orcid.org/0000-0002-3578-5560
; University of Zadar, Department of Economics, Zadar, Hrvatska
Abstract
Banking systems of countries that joined European Union after 2004, are to the largest extent owned by banking groups from the old member states. The importance of banking system for economic grow in this countries is more significant then in the old member states due to strong dependence of economies on banking sources of financing. Convergence toward the developed systems of the old member states would be of great interest for the further economic development of this group of countries. The aim of this paper is to analyse the current position of banking systems of European countries, with particular reference to Croatia’s position. The methodology is based on a comparison of GDP per capita with selected indicators of size, growth, deposit base and capitalization of the banking sector. The position of euro and non-euro area banking sectors is analysed using the indicators of development of the financial system, and depending on the period of joining the euro area. The results indicate that the banking systems of countries that joined the European Union after 2004 are still lagging behing the old members, and that the convergence is still far away, especially in the group of non-euro area countries. Among the new members of euro area, Malta and Cyprus are in lead in all indicators, as well as Estonia, while in the group of non-euro area countries, along with Sweden and Denmark, the best results are achieved by Croatia and Czech Republic. The results indicate that new member states, and especially non-euro area countries, still remain more dependent on deposits as a primarly source of financing lending activity, indicating the dominant position of banks in the financial systems of this countries.
Keywords
European Union; banking systems; euro area; convergence
Hrčak ID:
277781
URI
Publication date:
20.5.2022.
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