Average figures mask important differences from bank to bank and country to country. Recent studies, including one by the Bundesbank, find that larger banks, less capitalised banks and banks that are dependent on wholesale funding invest more in sovereign bonds than others. Hence, the more vulnerable banks are, the more they expose themselves to sovereign debt.
The number of branches is also decreasing and the use of resources is generally becoming more efficient. Overall, this set of structural changes is delivering positive results. The European banking system is enhancing its resilience and all actors involved are contributing: regulators, banks, and supervisors. There is, however, no room for complacency.