As the euro area has a predominantly bank-based financial system, changes in the composition and strength of banks … developments in banks’ balance sheets, profitability and risk-bearing capacity and analyses their relevance for monetary policy. We …

In this paper, we analyse a relationship between net interest margin (NIM) of EU banks and market interest rates in a … low-interest rate environment. We contribute to the literature when examining a large sample of annual data on 629 banks … investigated banks. Second, a higher market concentration, proxied by the Herfindahl index, leads to higher NIM. Finally, we show a …