Research On The Relationship Between Market Competitiveness And Profitability Of EU National Banks

By empirical analysis, this paper tries to explore the European banking integration relationship between competitive and profitable. First of all, starting from the EU Banking Integration policy, generally reviews the great events of EU financial integration process, then respectively reviews the banks history of central and eastern Europe, western Europe and at the time after financial crisis. Multidimensional analyze the EU banking integration development process. According to the latest banks’ data, exploring the measure of banking competition degree and profitability degree, analyzing the development trend of each index. To help readers have an overall impression of the European banking industry competition and profitability. Furthermore, use panel analysis method to study the relationship between the EU banks competition and profitability. Use 27 EU countries’ 2007 to 2013 CR5 as competition indicator and net interest margin as profitability indicators, concluding that CR5 and net interest margin have a significant negative correlation. Finally summarize this mutual negative relationship, and use this relationship to guide Chinese banks, financial regulation and banking system of China.