The impact of euro-integration processes on strengthening competitiveness of the banking sector

Authors: I. Aloshyna, PhD in Economics, Assistant Professor, ORCID ID 0000-0003-1320-5235, Taras Shevchenko National University of Kyiv, Kyiv, Ukraine

Annotation: The study considers the essence and effects of economic integration on the Euro zone banking sector. The study explains that the intensification of economic integration of European countries provides a competitive environment for banks. The results found that the integration at the macro level increases the international competitiveness of the banking sector by creating a more transparent single secure market and increasing its capacity through the application of common rules and administrative standards for banking supervision and resolution, and on the meso- and micro levels increases the international competitiveness of banking institutions by increasing efficiency and profitability by increasing the volume of cross-border banking activities within the Euro zone.  The conclusions suggest the main instruments of ECB’s monetary policy have a positive impact on improving the competitiveness of the banking sector by removing barriers to cross-border competition. Such instruments helped to create a large and transparent capital market, increase banking sector competitiveness by intensifying competition and efficiency of banks.

Keywords: economic integration; banking sector competitiveness; integrated financial market; ECB monetary policy.

Received: 20/04/2021
1st Revision: 27/04/2021
Accepted: 21/05/2021

DOI: https://doi.org/10.17721/1728-2667.2021/215-2/1

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