Authors
Patryk Dybek
Warsaw School of Economics
e-mail: patrykdybek@hotmail.com
ORCID: 0009-0007-7030-106X
- Volume 7 Issue (1) 2023
13-25
The stability of the European banking system has been recently tested by the COVID-19 pandemic in 2020 and then by the Russian aggression against Ukraine in 2022. Both events have forced the European Central Bank to implement many recovery measures. Despite having vastly different fundamentals, those events have led to the new economic reality with high interest rates and return on equity below the cost of equity for most European banks.
The paper aims to assess how pandemic and war impacted the banking sector and its stability. The analysis relies on data provided by public international authorities, global banking advisors, and open-access databases such as Eurostat. The overall, conclusion is that these neither events pushed the entire sector to the brink of collapse. The primary reason for this outcome was the implementation of measures established following the global financial crisis 2008.
Abad, Jose. 2022. Usability of Bank Capital Buffers: The Role of Market Expectations. New York, NY: International Monetary Fund, 8-32.
Caloromis, Charles. 2009. In Banking Crises and The Rules of The Game, 6-10. Cambridge. MA: National Bureau of Economic Research.
Cooke, Matt. 2022. “Banking on a sustainable path.” In Global Banking Annual Review 2022, 8-12. New York, NY: McKinsey Global Institute.
ECB Banking Supervision. 2023. “Aggregated results of SREP 2022.” www.bankingsupervision.europa.eu. Accessed 06 01, 2023. https://www.bankingsupervision.europa.eu/banking/srep/2023/html/ssm.srep202302_aggregateresults2023.en.html.
EMBER. 2023. “European power price tracker.” www.ember-climate.org. Accessed 05 31, 2023. https://ember-climate.org/data/data-tools/europe-power-prices/.
European Banking Authority. 2022. Risk Assessment of the European Banking System. Luxembourg: Publications Office of the European Union, 69-73.
European Central Bank - Statistical Data Warehouse. 2023. “Common Equity Tier 1 .” www.sdw.europa.eu. Accessed 10 04, 2023. https://data.ecb.europa.eu/data/datasets/CBD2/CBD2.Q.NL.W0.67._Z._Z.A.A.I4008._Z._Z._Z._Z._Z._Z.PC.
European Central Bank. 2023. “Non-performing Loans Ratio.” www.sdw.ecb.europa.eu. Accessed 09 30, 2023. https://data.ecb.europa.eu/search-results?searchTerm=CBD2.Q.B0.W0.11._Z._Z.A.F.I3632._Z._Z._Z._Z._Z._Z.PC.
—. 2023. “Our response to the coronavirus pandemic.” www.ecb.eu. Accessed 10 31, 2023. https://www.ecb.europa.eu/home/ search/coronavirus/html/index.en.html#:~:text=through%20international%20cooperation-,Helping%20the%20economy%20absorb%20the%20shock%20of%20the%20current%20crisis,need%20to%20weather%20the%20crisis.
—. 2020. “Pandemic emergency purchase programme.” www.ecb.eu. Accessed 10 30, 2023. https://www.ecb.europa.eu/mopo/implement/pepp/html/index.en.html.
Eurostat. 2023. “Electricity prices for household consumers.” www.ec.europa.eu. Accessed 10 21, 2023. https://ec.europa.eu/eurostat/ statistics-explained/index.php?title=Electricity_price_statistics.
Gortsos, Christos V. 2017. “A brief overview of the European Banking Union.” Centre international de formation européenne (Centre international de formation européenne) 67-72.
Gostomski, Eugeniusz. 2016. In Zmiany w sektorze bankowym w krajach Unii Europejskiej w dobie pokryzysowaej, 77-80. Gdańsk: Uniwersytet Gdański.
Minsky, Hyman. 1986. “Stabilizing an Unstable Economy.” 37-41. London: Yale University Press.
The Basel Committee. 2023. “History of The Basel Committe.” bis.org. Accessed 10 15, 2023. https://www.bis.org/bcbs/history.htm.
The European Commission. 2023. “Inflation in the euro area.” www.ec.europe.eu. Accessed 10 11, 2023. https://ec.europa.eu/ eurostat/databrowser/view/prc_hicp_manr/default/table?lang=en.
—. 2023a. “National Accounts and GDP.” www.ec.europa.eu. Accessed 10 20, 2023. https://ec.europa.eu/eurostat/statistics-explained/index.php?title=National_accounts_and_GDP.
Tomas. 2023. Hello. Warsaw: knf.org.
Toniolo, Gianni. 2025. Central bank cooperation at the Bank for International Settlements 1930-1973. Cambrdige: Cambridge University Press.
U.S. Bureau of Labour Statistics. 2023. “Average energy prices for the United States, regions, census divisions, and selected metropolitan areas.” www.bls.gov. Accessed 08 11, 2023. https://www.bls.gov/regions/midwest/data/averageenergyprices_selectedareas_table.htm.
Waligóra, Tomasz. 2013. Wprowadzenie uregulowań Bazylea III oraz jego skutki dla bankowości polskiej i europejskiej. Gdańsk: Uniwersytet Gdański.
Wunsch, Oliver. 2023. The EU Banking Regulatory Framework and Its Impact on Banks and The Economy. New York, NY: Oliver Wyman, 21-29.
Zaleska, Małgorzata. 2013. “Unia Bankowa - koncepcja i wyzwania.” 15-20. Warszawa: Szkoła Główna Handlowa w Warszawie.