The European Parliament today published a study in which Juan Mejino-López and I contribute to the debate on EU competitiveness and the role of the banking sector. Among other things, we highlight the extent to which undercapitalization in the early 2000s hurt the European banking sector's global competitive position in the following decade. The same mistake should not be repeated now. We also compare capital requirements and actual capital levels between the largest EU and US banks, and find that they are not currently less demanding in the US - contrary to what is often heard in Europe.
Click here to downlad the study in case the above link is broken.