Is there a common path for the integration of European Union banking systems?

Figures & data

Table 1. Descriptive statistics for data included in the sample.

	Interest rate on loans granted to the non-financial sector				Interest rate on mortgages granted to households				Interest rate on consumer credit granted to households				Interest rate on term deposits attracted from the non-financial sector				Interest rate on term deposits attracted from households
	Medium	Dev.	Min.	Max	Medium	Dev.	Min.	Max	Medium	Dev.	Min.	Max	Medium	Dev.	Min.	Max	Medium	Dev.	Min.	Max
Austria	3.01	1.12	1.78	5.61	3.24	1.23	1.85	5.71	4.44	1.24	3.01	7.14	1.62	1.30	0.34	4.61	1.69	1.06	0.46	3.99
Belgium	3.43	0.99	1.98	5.56	3.72	0.74	2.28	4.69	5.55	0.95	3.81	6.88	1.78	1.12	0.70	4.51	2.94	0.70	1.75	4.59
Bulgaria	8.32	2.13	4.02	11.58	8.15	1.42	4.74	9.84	11.06	1.22	8.13	12.41	3.49	1.75	0.33	6.17	4.33	1.93	0.54	7.30
Czech Republic	3.73	0.97	2.50	5.71	4.37	0.85	2.64	5.28	13.79	0.90	11.04	14.68	1.23	0.80	0.28	3.28	1.03	0.37	0.34	1.59
Denmark	3.63	1.20	2.00	6.17	3.77	1.20	2.27	6.00	7.14	0.92	5.46	9.69	1.55	1.52	−0.04	5.33	1.80	1.05	0.40	4.51
Estonia	3.54	1.33	2.25	6.57	2.90	1.40	1.68	6.02	8.45	1.47	4.67	10.32	1.61	1.43	0.32	4.95	1.77	1.21	0.61	4.64
Finland	2.66	1.27	1.40	5.63	2.36	1.37	1.03	5.46	4.01	1.23	3.00	7.04	1.62	1.31	0.24	4.84	2.04	1.18	0.58	4.80
France	3.33	1.01	1.88	5.40	3.71	0.66	2.17	4.74	5.84	0.97	3.83	7.48	2.42	1.00	0.93	4.74	3.10	0.38	2.45	3.80
Germany	3.70	0.98	2.23	5.60	4.19	0.75	2.71	5.15	5.72	0.77	4.30	6.85	1.73	1.30	0.34	4.65	2.12	0.76	1.10	3.78
Greece	5.61	0.77	4.39	7.24	3.60	0.90	2.35	5.19	9.83	0.78	8.49	11.31	2.85	1.36	0.69	5.10	3.01	1.35	0.65	5.23
Hungary	7.42	3.12	2.43	12.68	9.48	2.51	4.58	12.35	14.49	4.27	6.51	20.09	4.54	2.93	0.25	10.51	4.39	2.64	0.70	9.79
Ireland	3.79	1.17	2.96	6.70	3.24	0.88	2.55	5.33	6.17	0.91	4.91	8.01	2.05	1.38	0.08	4.72	2.55	1.17	0.48	4.58
Italy	3.82	1.11	2.29	6.44	3.60	1.12	2.12	5.97	5.72	0.84	4.77	7.62	2.25	1.20	0.90	4.88	2.07	0.68	1.13	3.30
Latvia	4.21	1.30	2.68	7.19	3.50	1.30	2.17	6.21	10.78	3.98	5.46	16.16	1.77	1.55	0.12	4.85	1.77	1.55	0.12	4.85
Lithuania	3.56	1.37	2.08	6.57	3.20	1.37	1.60	5.92	5.69	0.63	4.66	6.74	1.55	1.35	0.19	4.50	1.89	1.42	0.39	4.97
Luxembourg	2.90	1.17	1.45	5.52	2.71	1.08	1.87	5.19	3.73	0.79	2.86	5.79	1.25	1.42	−0.02	4.57	1.65	1.09	0.71	4.44
Netherlands	3.48	0.97	2.30	5.65	4.47	0.45	3.35	4.96	5.34	0.70	4.21	6.94	1.94	1.23	0.81	4.69	3.53	0.50	2.54	4.52
Poland	5.44	1.28	3.48	7.69	5.41	1.29	3.54	7.92	12.20	2.44	7.74	14.69	3.39	1.33	1.49	5.94	3.40	1.32	1.48	6.41
Portugal	4.32	1.05	2.70	6.59	2.50	1.58	1.11	5.99	8.12	0.57	7.04	9.31	2.36	1.39	0.45	4.98	2.24	0.96	0.45	3.90
Romania	9.74	4.21	3.99	19.13	7.72	2.90	3.30	11.40	14.10	2.75	9.97	19.20	4.98	3.78	0.47	15.71	5.54	3.34	0.94	14.08
Slovakia	3.66	0.95	2.39	6.05	4.80	1.18	2.28	6.31	9.90	1.78	5.48	11.28	1.37	1.23	0.20	4.30	2.08	0.66	0.93	3.53
Slovenia	4.11	1.07	2.18	6.50	3.90	1.68	2.30	7.62	6.09	0.99	4.98	8.29	2.25	1.40	0.19	5.06	2.62	1.19	0.54	4.73
Spain	3.54	1.07	1.96	5.97	2.94	1.37	1.21	5.72	6.00	0.43	5.35	7.12	2.30	1.15	0.65	4.74	2.25	1.19	0.17	4.47
Sweden	3.02	1.13	1.50	5.76	3.15	1.03	1.70	5.38	6.27	1.15	4.70	8.84	1.72	1.39	0.01	4.82	1.57	1.15	0.11	4.39

Note: Values are calculated for January 2007–October 2017.

Source: Own estimate.

Table 2. Cluster convergence algorithm for interest rate on loans to non-financial sector, 2007: 1–2017:10.

Cluster	Countries	${\mathit{t}}_{\mathit{b}}$	$\widehat{\mathit{b}}$
Cluster1	Ireland, Portugal, Poland, Greece, Bulgaria, Romania	5.0951	0.3469
Cluster2	Austria, Belgium, Germany, Estonia, Spain, France, Lithuania, Slovenia, Denmark, Latvia, Slovakia, Italy, Czech Republic, Hungary, the Netherlands	−0.2138	−0.0193
Cluester3	Finland, Luxembourg, Sweden	−0.2873	−0,1450
Testing the hypothesis of convergence between clusters
Cluster 1 + Cluster 2		−443.918	−0.5681
Cluster 2 + Cluster 3		−15.1402	−0.8124

Notes: The null hypothesis of convergence is rejected at 5% if ${\mathrm{t}}_{\mathrm{b}}<-1,65.$

Source: Own estimates.

Figure 1. Dynamics of interest rate trajectories on loans to the non-financial sector.

Source. Own estimates

Table 3. Cluster convergence algorithm for interest rate on mortgage loans granted to households for the purchase of buildings, 2007:1–2017:10.

Cluster	Countries	${\mathit{t}}_{\mathit{b}}$	$\widehat{\mathit{b}}$
Cluster1	Bulgaria, Hungary, the Netherlands	7.5032	0.1191
Cluster2	Poland, Romania, Germany, Czech Republic, Ireland	13.5577	0.7064
Cluster3	Slovakia, France	2.4237	1.1396
Cluster4	Greece, Belgium	1.3154	1.4470
Cluster5	Denmark, Slovenia, Italy	11.4148	0.3528
Cluster6	Latvia, Luxembourg	6.4387	0.7866
Cluster7	Austria Sweden	−1.1012	−1.6076
Cluster8	Estonia, Lithuania	2.5786	1.7078
divergent	Spain, Finland, Portugal
Testing the hypothesis of convergence between clusters
Cluster 1 + Cluster 2		−7.6213	0.2567
Cluster 2 + Cluster 3		4.0819	0.4964
Cluster 3 + Cluster 4		1.7945	0.7333
Cluster 4 + Cluster 5		−65.1556	−1.0118
Cluster 5 + Cluster 6		4.3642	0.0827
Cluster 6 + Cluster 7		5.0203	0.1944
Cluster 8 + Cluster 9		−17.4674	−1.3406

Notes: The null hypothesis of convergence is rejected at 5% if ${\mathrm{t}}_{\mathrm{b}}<-1,65.$

Source: Own estimates.

Figure 2. Dynamics of interest rates trajectories for mortgage loans granted to households for the purchase of real estate.

Source: Own estimates

Table 4. Cluster convergence algorithm for interest rate on consumer credit to households, 2007:1–2017:10.

Cluster	Countries	${\mathit{t}}_{\mathit{b}}$	$\widehat{\mathit{b}}$
Cluster1	Latvia, Czech Republic, Estonia, Romania	2.5260	0,2206
Cluster2	Spain, Ireland, Lithuania, Slovakia, Hungary, Greece, Bulgaria, Poland	11.2609	0.8286
Cluster3	Slovenia, Italy	172.469	1.8115
Cluster4	Germany, the Netherlands, France	24.9514	1.1223
Cluster5	Belgium, Austria, Luxemburg	59.0443	0.0268
divergent	Finland, Portugal, Sweden, Denmark
Testing the hypothesis of convergence between clusters
Cluster 1 + Cluster 2		1.1499	0.0590
Cluster 2 + Cluster 3		4.1347	0.3435
Cluster 3 + Cluster 4		−4.6544	0.7561
Cluster 4 + Cluster 5		−17.3554	−0.4180

Notes: The null hypothesis of convergence is rejected at 5% if ${\mathrm{t}}_{\mathrm{b}}<-1.65.$

Source: Own estimates.

Figure 3. Dynamics of interest rate trajectories on consumer credit granted to households.

Source: Own estimates

Table 5. Cluster convergence algorithm for the interest rate on term deposits attracted from the non-financial sector, 2007: 1–2017: 10.

Cluster	Countries	${\mathit{t}}_{\mathit{b}}$		$\widehat{\mathit{b}}$
Cluster1	Belgium, Romania, Hungary, Bulgaria, Poland, France, the Netherlands, Italy	9.1575		0.6716
Cluster2	Germany, Slovakia, Greece, Spain, Finland, Czech Republic, Portugal	9.9556		0.3774
Cluster3	Austria, Estonia, Ireland, Lithuania, Luxembourg, Slovenia, Sweden, Denmark, Latvia	1.1240		0.2059
Testing the hypothesis of convergence between clusters
Cluster 1 + Cluster 2		8.2722	0.3684
Cluster 2 + Cluster 3		−2.6891	−0.2916

Notes: The null hypothesis of convergence is rejected at 5% if ${\mathrm{t}}_{\mathrm{b}}<-1,65.$

Source: Own estimates.

Figure 4. Dynamics of interest rate trajectories on term deposits attracted from the non-financial sector.

Source: Own estimates

Table 6. Cluster convergence algorithm for interest rate on term deposits attracted from households, 2007:1–2017:10.

Cluster	Countries	${\mathit{t}}_{\mathit{b}}$	$\widehat{\mathit{b}}$
Cluster 1	Netherlands, France	4.9910	0.3338
Cluster 2	Romania, Bulgaria, Belgium, Poland, Italy, Germany, Slovakia	120.503	1.0748
Cluster 3	Austria, Estonia, Spain, Finland, Greece, Ireland, Lithuania, Luxembourg, Portugal, Slovenia, Czech Republic, Hungary, Sweden, Denmark, Latvia	0.4044	0.0396
Testing the hypothesis of convergence among clusters
Cluster 1 + Cluster 2		0.3615	0.0643
Cluster 2 + Cluster 3		−8.5625	−0.2257

Notes: The null hypothesis of convergence is rejected at 5% if ${\mathrm{t}}_{\mathrm{b}}<-1,65.$

Source: Own estimates.

Figure 5. Dynamics of interest rate trajectories on term deposits attracted from households.

Source: Own estimates