Two-sided payment card markets generate costs that have to be distributed among the participating actors. For this purpose, payment card networks set an interchange fee, which is the fee paid by the merchant’s bank to the cardholder’s bank per transaction.
The fall in economic output all over Europe since 2008 has had important consequences for household liabilities. Major growth in demand and supply for household credit products has generated an increase in household debt, which contributed to growth rates during the pre-crisis period but – in some countries – became household-debt overhangs and helped inflate asset bubbles.
This report brings together in a single volume the excellent contributions presented at the high-level conference on “The Future of Retail Banking in Europe: Competition and Regulatory Challenges” held at CEPS on the 10th of June 2009.
Information asymmetries can severely limit the cross-border border expansion of banks, if entering banks can only obtain incomplete information about potential new clients. Such asymmetries are reduced by credit registers, which distribute financial data on bank clients.
The ECRI Commentaries Series provides short comments on ongoing developments as regards credit markets and other relevant developments in the field of financial services. ECRI researchers as well as external experts contribute to this series.
The institute's flagship publication provides the latest available statistical information on consumer and other credit to households in Europe, allowing its user to make meaningful comparisons between all 27 EU member states.