Key observation – Data show that in 2020, European banks continued consolidating to increase efficiency and enhance profitability with a focus on digital financial services to meet the changing needs of customers, especially young adults
The European Banking Federation (EBF) published in December 2020 its annual update on the banking sector in Europe, Facts & Figures Banking in Europe 2021. In line with previous years the MBA collated the data for Malta from various sources such as: Central Bank of Malta Annual Report 2020; Central Bank of Malta Financial Stability Report 2020; Malta Financial Services Authority Annual Report 2020 and FATF website.
The EBF’s statistical publication is a multi-faceted digital resource which provides users with key data about banking in Europe and a unique perspective on, and deeper understanding of, the structure, performance and trends in lending and deposits, amongst other topics, in European banking on a year-by-year comparison alongside a country-by-country overview. The data is based on publicly available information from the European Central Bank, the European Banking Authority, the Eurostat, national central banks amongst others. The comprehensive national bank sector data is provided through all national banking associations that are members of the EBF and its associate members. The publication is available online via the EBF website and can be found at https://www.ebf.eu/facts-and-figures/. By clicking on the first image, one may have access to the finalised PDF of Facts&Figures 2021.
The banking statistics for 2020 shows that contraction continues in the European banking sector shaping a financial system based on efficiency and stability. The total number of credit institutions continues declining: since 2008, the number of credit institutions has fallen by one-third. Compared to 2019, the number of branches decreased by almost 8% as banks intensify the use of digital banking. Nevertheless, the number of branches of non-EU banks has increased by 20%. Meanwhile, employment in the sector is decreasing at a slower pace. The sector employed over 2.2 million people in the European Union by the end of 2020.
Lending to households and businesses increased with NFC loans outstanding in the EU reaching the highest level since 2008. The total deposits from businesses and households grew by 10% to €14.8 trillion in the EU. Deposits from households rose 7.6% compared to a year earlier while business deposits increased 18.6%. The data also reveals the upward trend in the total assets held by EU banks, expanding in 2020 for the third consecutive year, amounting to €39.2 trillion.
National data can be accessed via an interactive map https://www.ebf.eu/facts-and-figures/country-by-country-overview/ and specifically for Malta, at https://www.ebf.eu/malta/ .