Bank Debt in Europe “Are Funding Models Broken”

The crisis in Europe has underscored the vulnerability of European bank funding models compared to international peers. This paper studies the drivers behind this fragility and examines the future of bank funding, primarily wholesale, in Europe. We argue that cyclical and structural factors have alt...

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Bibliographic Details
Main Author: Le Lesle, Vanessa
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2012
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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651 4 |a United States 
653 |a Public Administration 
653 |a Liquidity risk 
653 |a Banks 
653 |a Finance 
653 |a Corporate Finance and Governance: Government Policy and Regulation 
653 |a Banks and banking 
653 |a Financial statements 
653 |a Deposit insurance 
653 |a Mortgages 
653 |a Liquidity; Economics 
653 |a International Financial Markets 
653 |a Financial risk management 
653 |a Capital and Ownership Structure 
653 |a Accounting 
653 |a Goodwill 
653 |a Asset-liability management 
653 |a Public Sector Accounting and Audits 
653 |a Public financial management (PFM) 
653 |a Banking 
653 |a Financial reporting, financial statements 
653 |a Bank deposits 
653 |a Financial Risk and Risk Management 
653 |a Financing Policy 
653 |a Financial Risk Management 
653 |a Investment Decisions 
653 |a Depository Institutions 
653 |a Economic & financial crises & disasters 
653 |a Value of Firms 
653 |a Micro Finance Institutions 
653 |a Financial Institutions and Services: Government Policy and Regulation 
653 |a Crisis management 
653 |a Asset and liability management 
653 |a Liquidity 
653 |a Banks and banking; State supervision 
653 |a Banks and Banking 
653 |a Finance, Public; Accounting 
653 |a Financial regulation and supervision 
653 |a Finance: General 
653 |a Portfolio Choice 
653 |a Financial services law & regulation 
653 |a Liquidity requirements 
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520 |a The crisis in Europe has underscored the vulnerability of European bank funding models compared to international peers. This paper studies the drivers behind this fragility and examines the future of bank funding, primarily wholesale, in Europe. We argue that cyclical and structural factors have altered the structure, cost, and composition of funding for European banks. The paper discusses the consequences of shifting funding patterns and investor preferences and presents possible policy options and bank actions to enhance European bank funding models’ robustness