Against a background of far-reaching structural change in the banking sector, this article reviews
the recent academic literature on developments in European banking. European banking markets
have become increasingly integrated in recent years, but barriers to full integration, especially in
retail banking, still remain. European integration has possible implications for systemic risk, and
poses various challenges for the current supervisory framework. The banks’ responses to the changing
competitive environment include the pursuit of strategies of diversification, vertical product differentiation
and consolidation. European integration has implications for competition in banking
markets, for the nature of long-term borrower-lender relationships, and for the relationships
between ownership structure, technological change and bank efficiency. The article concludes by
reviewing recent literature on the credit channel in the monetary transmission mechanism, and interest
rate pass-through.

作者：John Goddard a,1, Philip Molyneux a,2, John O.S. Wilson b,*,Manouche Tavakoli b,3
a Business School, University of Wales, Bangor, Gwynedd LL57 2DG, UK
b School of Management, University of St. Andrews, The Gateway, North Haugh, St. Andrews, Fife, KY16 9SS, UK