Vanessa Le Leslé from the IMF is out with a new paper. The abstract:
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.
It’s set up with bullet points and lots of graphs, so not too hard a read. Good if one is tired of Christmas stuff…
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