Essays on the heterogeneity in European banking

Eeva Kerola

Research output: ThesisDoctoral ThesisCollection of Articles


This dissertation consists of four empirical essays each having a different point of view on the subject of banking sector heterogeneity in Europe. Aim is to provide evidence that bank-specific differences have a role in bank behavior and performance. The first essay studies how banks of different ownership structure have overcome the recent crisis by focusing on bank profitability, loan quality and cost efficiency, comparing performance before and after the recent crisis unveiled. The second essay focuses on the individual bank ratings issued by two credit rating agencies (Fitch and Moody's) and observes how banks of different ownership structure have been valued and whether credit rating agencies changed their views about any particular ownership group as a reaction to the onset of the crisis. The third essay examines whether banks of different ownership structure have differences in loan supply policies and how the recent crisis has affected the transmission of monetary policy to loan growth of different banks. The fourth essay studies bank credit standard changes and whether these are affected by differences in bank-specific variables. This dissertation shows that heterogeneity in banking matters to bank behavior and economic performance. In order to have well-functioning banking sectors across Euro area it is important to have a sufficient amount of banks with heterogeneous goals. It is also important not to disregard the effects of banking sector heterogeneity when making regulative and policy decisions.
Translated title of the contributionEsseitä Euroopan pankkisektorin monimuotoisuudesta
Original languageEnglish
QualificationDoctor's degree
Awarding Institution
  • Aalto University
Print ISBNs978-952-60-6259-4
Electronic ISBNs978-952-60-6260-0
Publication statusPublished - 2015
MoE publication typeG5 Doctoral dissertation (article)


  • banking
  • shareholder banks
  • cooperative bank
  • saving bank
  • performance
  • credit rating agencies
  • lending
  • credit standards


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